Neuberger Berman Alternative Funds N-CSR Certified annual shareholder report (management investment company)

As filed with the Securities and Exchange Commission on January 5, 2024

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-21715

NEUBERGER BERMAN ALTERNATIVE FUNDS

 (Exact Name of Registrant as specified in charter)

c/o Neuberger Berman Investment Advisers LLC

1290 Avenue of the Americas

New York, New York 10104-0002

(Address of Principal Executive Offices – Zip Code)

Joseph V. Amato

Chief Executive Officer and President

Neuberger Berman Alternative Funds

c/o Neuberger Berman Investment Advisers LLC

1290 Avenue of the Americas

New York, New York 10104-0002

Lori L. Schneider, Esq.

K&L Gates LLP

1601 K Street, N.W.

Washington, D.C. 20006-1600

(Names and Addresses of agents for service)

Registrant’s telephone number, including area code: (212) 476-8800

Date of fiscal year end: October 31

Date of reporting period: October 31, 2023

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940, as amended (“Act”) (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1.  Report to Shareholders.

(a) Following are copies of the annual reports transmitted to shareholders pursuant to Rule 30e-1 under the Act.

Annual

Report

October

31,

2023

Neuberger

Berman

Alternative

Funds

Institutional

Class

Shares

Class

A

Shares

Class

C

Shares

Class

R6

Shares

Class

E

Shares

Absolute

Return

Multi-Manager

Fund

Contents

The

“Neuberger

Berman”

name

and

logo

and

“Neuberger

Berman

Investment

Advisers

LLC”

name

are

registered

service

marks

of

Neuberger

Berman

Group

LLC.

The

individual

Fund

name

in

this

piece

is

either

a

service

mark

or

registered

service

mark

of

Neuberger

Berman

Investment

Advisers

LLC,

an

affiliate

of

Neuberger

Berman

BD

LLC,

distributor,

member

FINRA.

©

2023

Neuberger

Berman

BD

LLC,

distributor.

All

rights

reserved.

PRESIDENT’S

LETTER

1

PORTFOLIO

COMMENTARY

2

FUND

EXPENSE

INFORMATION

9

CONSOLIDATED

SCHEDULE

OF

INVESTMENTS

11

CONSOLIDATED

FINANCIAL

STATEMENTS

32

NOTES

TO

CONSOLIDATED

FINANCIAL

STATEMENTS

37

CONSOLIDATED

FINANCIAL

HIGHLIGHTS

(ALL

CLASSES)

51

Report

of

Independent

Registered

Public

Accounting

Firm

55

Directory

56

Trustees

and

Officers

57

Proxy

Voting

Policies

and

Procedures

67

Quarterly

Portfolio

Schedule

67

Liquidity

Risk

Management

Program

67

Notice

to

Shareholders

67

Board

Consideration

of

the

Management

and                                                  

Sub-Advisory

Agreements

68

President’s

Letter

1

Dear

Shareholder,

I

am

pleased

to

present

this

annual

shareholder

report

for

Neuberger

Berman

Absolute

Return

Multi-Manager

Fund

covering

the

fiscal

year

ended

October

31,

2023

(the

reporting

period).

The

global

financial

markets

experienced

periods

of

heightened

volatility

during

the

reporting

period.

Investor

sentiment

was

impacted

by

a

number

of

factors,

including

continued

high

inflation,

aggressive

monetary

policy

tightening,

a

period

of

unrest

in

the

regional

banking

industry,

wars

in

Ukraine

and

the

Middle

East,

and

several

other

geopolitical

events.

Despite

several

headwinds,

the

U.S.

economy

was

resilient

and

continued

to

expand.

Against

this

backdrop,

equity

and

bond

markets

generated

mixed

results

during

the

reporting

period.

With

inflation

remaining

persistent

and

elevated,

the

U.S.

Federal

Reserve

Board

(Fed)

remained

steadfast

in

its

attempt

to

moderate

economic

growth

and

orchestrate

a

“soft

landing.”

The

Fed

raised

rates

at

11

meetings

from

March

2022

through

July

2023—bringing

the

federal

funds

rate

to

a

range

between

5.25%-5.50%,

the

highest

level

in

22

years.

While

the

central

bank

paused

from

raising

rates

at

its

meetings

in

September

and

November

2023

(after

the

reporting

period),

it

left

on

the

table

the

possibility

of

additional

hikes

in

the

future.

After

rising

over

the

first

nine

months

of

the

reporting

period,

a

portion

of

equity

market

gains

were

given

back

over

the

last

three

months.

This

turnaround

was

partially

triggered

by

investors

reacting

to

the

possibility

of

a

“higher

for

longer”

interest

rate

environment.

All

told,

the

S&P

500

®

Index

returned

10.14%

during

the

reporting

period.

Meanwhile,

international

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

EAFE

®

and

MSCI

Emerging

Market

Indices

(Net),

returned

14.40%

and

10.80%,

respectively.

Meanwhile,

with

short-

and

long-term

Treasury

yields

moving

higher,

the

bond

market

was

challenged

(yields

and

bond

prices

generally

move

in

the

opposite

direction).

For

the

reporting

period

the

broad

taxable

investment-grade

bond

market,

as

measured

by

the

Bloomberg

U.S.

Aggregate

Bond

Index,

returned

0.36%.

Looking

ahead,

until

we

have

more

clarity

on

the

path

of

the

economy

versus

inflation,

we

anticipate

continued

market

volatility.

In

such

an

environment,

we

believe

the

divergence

in

underlying

companies’

operating

performance

will

be

ever

more

apparent

going

forward.

Our

constructive

long-term

view

for

the

market

is

not

without

challenges

as

we

move

through

2023

and

beyond.

As

always,

we

continue

our

efforts

to

best

understand

company

and

portfolio-specific

factors

as

we

believe

this

environment

is

flush

with

a

confluence

of

fiscal

policy

considerations,

monetary

policy

stimulus,

public

health

concerns,

geopolitical

uncertainty,

commodity

price

volatility,

inflation

dynamics

and

sequencing

question

marks.

As

market

dynamics

change,

this

can

cause

company

market

values

to

dislocate

from

their

long-term

potential

values,

creating

a

volatile

environment

with

potential

opportunities.

We

highlight

these

risks

because

the

current

environment,

as

always,

necessitates

a

flexible

approach

in

the

complex

global

world

in

which

we

operate.

Thank

you

for

your

support

and

trust.

We

look

forward

to

continuing

to

serve

your

investment

needs

in

the

years

to

come.

Sincerely,

J

OSEPH

V.

A

MATO

P

RESIDENT

AND

CEO

N

EUBERGER

B

ERMAN

A

LTERNATIVE

F

UNDS

2

Absolute

Return

Multi-Manager

Fund

Commentary

(Unaudited)

Neuberger

Berman

Absolute

Return

Multi-Manager

Fund

Institutional

Class

generated

a

1.12%

total

return

for

the

fiscal

year

ended

October

31,

2023

(the

reporting

period),

outperforming

its

primary

benchmark,

the

HFRX

®

Global

Hedge

Fund

Index

(the

Index),

which

posted

a

0.64%

total

return

for

the

same

period.

(Performance

for

all

share

classes

is

provided

in

the

table

following

this

letter.)

Global

equities

ended

the

reporting

period

higher,

with

the

bulk

of

gains

earlier

in

the

period,

while

equities

sold

off

in

the

latter

months.

After

selling

off

throughout

most

of

calendar

year

2022

due

to

a

combination

of

geopolitical

conflict,

stubbornly

high

inflation,

and

rising

interest

rates,

equities

recovered

as

inflation

moderated

and

economic

figures

were

resilient

despite

higher

costs

of

capital

permeating

through

the

economy.

However,

weaker

economic

data,

combined

with

rising

bond

yields

and

inflation

in

recent

months,

have

begun

to

concern

investors

once

again,

leading

to

a

recent

market

selloff.

Gains

from

long/short

equity,

insurance

linked,

and

merger

arbitrage/event

driven

strategies

outpaced

losses

from

global

macro/managed

futures

strategies

during

the

reporting

period.

From

a

risk

management

perspective,

we

were

pleased

that

the

Fund’s

volatility

and

betas*

(risk)

to

the

S&P

500

®

and

Bloomberg

U.S.

Aggregate

Bond

Indices

were

all

in

line

with

our

expectations.

The

allocation

to

long/short

equity

strategies

contributed

to

performance,

as

gains

from

longs

outweighed

losses

from

shorts,

with

positive

excess

returns

generated

from

longs

and

negative

excess

returns

generated

from

shorts.

The

small

allocation

to

insurance

linked

was

a

consistent

contributor,

as

catastrophe

bonds

(cat

bonds)

generated

income

and

prices

rallied

with

no

impairment

to

any

bonds.

The

merger

arbitrage/event

driven

allocation

contributed,

as

several

deals

progressed

and

closed

during

the

reporting

period.

The

allocation

to

global

macro/managed

futures

strategies

was

a

small

detractor,

as

losses

from

the

managed

futures

strategy

outweighed

gains

from

the

systematic

currency

strategy.

Within

the

managed

futures

strategy,

gains

from

cash

were

outpaced

by

losses,

driven

by

commodities

and

followed

by

currencies,

equities,

and

interest

rate

positioning.

Within

the

systematic

currency

strategy,

positive

performance

was

driven

by

cash

holdings,

short

U.S.

government

bond

exposure,

and

a

long

in

the

U.S.

dollar

versus

several

currencies.

These

gains

were

partially

offset

by

losses

from

long

positioning

in

the

U.S.

dollar

versus

the

Japanese

yen,

euro,

and

British

pound.

The

Fund’s

aggregate

use

of

futures,

forward

foreign

currency,

swap

contracts

and

purchased

and

written

option

contracts

detracted

from

performance

during

the

reporting

period.

Even

as

central

banks

globally

have

paused

on

hiking

interest

rates,

we

believe

geopolitical

tensions,

as

well

as

declining

economic

growth

and

waning

consumer

confidence,

have

the

potential

to

drive

market

volatility.

We

continue

to

position

the

Fund

defensively

and

seek

to

benefit

from

elevated

volatility,

with

the

potential

for

additional

upside

if

rates

continue

to

rise.

The

Fund’s

largest

allocation

is

to

global

macro/managed

futures

strategies.

We

believe

that

increases

in

market

volatility

may

be

beneficial

for

these

strategies

and

that

macroeconomic

conditions

across

regions,

as

well

as

differences

in

fiscal

and

monetary

policies,

have

the

potential

to

continue

to

drive

trends

across

asset

classes.

The

Fund’s

second

largest

allocation

is

to

merger

arbitrage/event

driven

strategies.

While

M&A

activity

has

slowed,

we

believe

current

deal

volumes

and

relatively

wide

spreads

offer

ample

opportunities

to

put

capital

to

work

with

the

potential

for

attractive

returns.

The

Fund’s

third

largest

allocation

is

long/short

equity.

We

anticipate

a

high

dispersion

of

winners

and

losers

over

the

medium

term,

driven

by

a

number

of

factors,

including

inflation,

increasing

costs

of

capital,

currency

effects,

and

varying

levels

of

economic

sensitivity.

The

opportunistic

allocation

to

cat

bonds

continues

to

benefit

from

the

dislocation

in

the

cat

bond

and

reinsurance

markets

created

by

Hurricane

Ian,

offering

attractive

yields

with

strong

downside

mitigation,

in

our

view.

Sincerely,

D

AVID

K

UPPERMAN,

J

EFF

M

AJIT

AND

F

RED

I

NGHAM

P

ORTFOLIO

M

ANAGERS

3

* 

Beta

is

a

measure

of

the

systematic

risk

of

a

portfolio.

It

is

the

covariance

of

the

portfolio

and

a

market

index

divided

by

the

variance

of

the

market

index.

Beta

measures

the

historical

sensitivity

of

a

portfolio’s

returns

to

movements

in

the

market

index.

The

beta

of

the

market

index

will

always

be

one.

A

portfolio

with

a

beta

above

the

market

index

(i.e.,

>1)

means

that

the

portfolio

has

greater

volatility

than

the

market

index.

If

the

beta

of

the

portfolio

is

1.2,

a

market

increase

in

return

of

1%

implies

a

1.2%

increase

in

the

portfolio’s

return.

If

the

beta

of

the

portfolio

is

0.8,

a

market

decrease

in

return

of

1%

implies

a

0.8%

decrease

in

the

portfolio’s

return.

Information

about

principal

risks

of

investing

in

the

Fund

is

set

forth

in

the

prospectus

and

statement

of

additional

information.

The

portfolio

composition,

industries

and

holdings

of

the

Fund

are

subject

to

change

without

notice.

The

opinions

expressed

are

those

of

the

Fund’s

portfolio

managers

and

subadvisers.

The

opinions

are

as

of

the

date

of

this

report

and

are

subject

to

change

without

notice.

TICKER

SYMBOLS

Institutional

Class

NABIX

Class

A

NABAX

Class

C

NABCX

Class

R6

NRABX

Class

E

NABEX

PORTFOLIO

BY

INVESTMENT

TYPE

(as

a

%

of

Total

Net

Assets)

Long

Short

Common

Stocks

30.9

%

(3.8)

%

Corporate

Bonds

0.0

–

Insurance

Linked

Securities

6.5

–

Loan

Assignments

0.0

–

Preferred

Stocks

0.1

–

Rights

0.1

–

Warrants

0.0

–

Short-Term

Investments

53.6

–

Other

Assets

Less

Liabilities

12.6

*

–

Total

103.8%

(3.8)%

*

Includes

the

impact

of

the

Fund's

open

positions

in

derivatives

(other

than

options

purchased),

if

any.

The

performance

data

quoted

represent

past

performance

and

do

not

indicate

future

results.

Current

performance

may

be

lower

or

higher

than

the

performance

data

quoted.

For

current

performance

data,

including

current

to

the

most

recent

month-end,

please

visit

www.nb.com/performance.

The

results

shown

in

the

table

reflect

the

reinvestment

of

income

dividends

and

other

distributions,

if

any.

The

results

do

not

reflect

the

effect

of

taxes

a

shareholder

would

pay

on

Fund

distributions

or

on

the

redemption

of

Fund

shares.

The

investment

return

and

principal

value

of

an

investment

will

fluctuate

and

shares,

when

redeemed,

may

be

worth

more

or

less

than

their

original

cost.

Returns

would

have

been

lower

if

Neuberger

Berman

Investment

Advisers

LLC

(“NBIA”)

had

not

reimbursed

certain

expenses

and/or

waived

a

portion

of

the

investment

management

fees

during

certain

of

the

periods

shown.

Repayment

by

a

class

(of

expenses

previously

reimbursed

and/or

fees

previously

waived

by

NBIA)

will

decrease

the

class’s

returns.

Please

see

Note

B

in

the

Notes

to

Consolidated

Financial

Statements

for

specific

information

regarding

expense

reimbursement

and/or

fee

waiver

arrangements.

As

stated

in

the

Fund’s

most

recent

prospectus,

the

total

annual

operating

expense

ratios

for

fiscal

year

2022

were

2.98%,

3.33%,

4.13%,

2.90%

and

3.04%

for

Institutional

Class,

Class

A,

Class

C,

Class

R6

and

Class

E

shares,

respectively

(before

expense

reimbursements

and/or

fee

waivers,

if

any).

The

expense

ratios

were

2.29%,

2.62%,

3.39%,

2.18%,

and

1.34%

for

Institutional

Class,

Class

A,

Class

C,

Class

R6

and

Class

E

shares,

respectively,

after

expense

reimbursements

and/or

fee

waivers.

The

expense

ratios

for

the

annual

period

ended

October

31,

2023,

can

be

found

in

the

Consolidated

Financial

Highlights

section

of

this

report.

Returns

shown

with

a

sales

charge

reflect

the

deduction

of

the

current

maximum

initial

sales

charge

of

5.75%

for

Class

A

shares

and

the

contingent

deferred

sales

charge

(CDSC)

for

Class

C

shares.

The

CDSC

for

Class

C

shares

is

1.00%,

which

is

reduced

to

0%

after

1

year.

The

performance

of

the

Fund’s

share

classes

will

differ

primarily

due

to

different

sales

charge

structures

and

class

expenses.

Please

see

the

prospectus

for

more

information

about

sales

charge

structures,

if

any,

and

class

expenses

for

your

share

class.

PERFORMANCE

HIGHLIGHTS

Average

Annual

Total

Return

Ended

10/31/2023

Inception

Date

1

Year

5

Years

10

Years

Life

of

Fund

At

NAV

Institutional

Class

05/15/2012

1.12%

3.44%

2.04%

2.56%

Class

A

05/15/2012

0.79%

3.07%

1.68%

2.19%

Class

C

05/15/2012

0.01%

2.28%

0.90%

1.42%

Class

R6

3

12/31/2013

1.13%

3.53%

2.10%

2.61%

Class

E

3

01/11/2022

2.53%

3.90%

2.27%

2.76%

With

Sales

Charge

Class

A

-5.01%

1.86%

1.08%

1.66%

Class

C

-0.98%

2.28%

0.90%

1.42%

Index

HRFX

®

Global

Hedge

Fund

Index

1,2

0.64%

2.41%

1.27%

1.70%

S&P

500

®

Index

1,2

10.14%

11.01%

11.18%

12.62%

Bloomberg

U.S.

Aggregate

Bond

Index

1,2

0.36%

-0.06%

0.88%

0.87%

Absolute

Return

Multi-Manager

Fund

(Unaudited)

4

COMPARISON

OF

A

$1,000,000

INVESTMENT

(000’s

omitted)

This

graph

shows

the

change

in

value

of

a

hypothetical

$1,000,000

investment

in

the

Fund

over

the

past

10

fiscal

years,

or

since

the

Fund’s

inception

if

it

has

not

operated

for

10

years.

The

graph

is

based

on

the

Institutional

Class

shares

only;

the

performance

of

the

Fund’s

share

classes

will

differ

primarily

due

to

different

sales

charge

structures

and

class

expenses

(see

Performance

Highlights

chart

on

previous

page).

The

result

is

compared

with

benchmarks,

which

include

a

broad-based

market

index

and

may

include

a

more

narrowly

based

index.

Market

indices

have

not

been

reduced

to

reflect

any

of

the

fees

and

costs

of

investing.

The

results

shown

in

the

graph

reflect

the

reinvestment

of

income

dividends

and

other

distributions,

if

any.

The

results

do

not

reflect

the

effect

of

taxes

a

shareholder

would

pay

on

Fund

distributions

or

on

the

redemption

of

Fund

shares.

Results

represent

past

performance

and

do

not

indicate

future

results.

Absolute

Return

Multi-Manager

Fund

(Unaudited)

5

6

Endnotes

(Unaudited)

1

Please

see

“Glossary

of

Indices”

on

page

7

for

a

description

of

indices.

Please

note

that

individuals

cannot

invest

directly

in

any

index.

The

S&P

500

®

and

the

Bloomberg

U.S.

Aggregate

Bond

Indices

do

not

take

into

account

any

fees,

expenses

or

tax

consequences

of

investing

in

the

individual

securities

that

they

track.

The

HFRX

®

Global

Hedge

Fund

Index

does

take

into

account

fees

and

expenses,

but

not

tax

consequences,

of

investing

since

it

is

based

on

the

underlying

hedge

funds’

net

returns.

Data

about

the

performance

of

an

index

are

prepared

or

obtained

by

NBIA

and

reflect

the

reinvestment

of

income

dividends

and

other

distributions,

if

any.

The

Fund

may

invest

in

securities

not

included

in

a

described

index

and

generally

does

not

invest

in

all

securities

included

in

a

described

index.

2

The

date

used

to

calculate

Life

of

Fund

performance

for

the

index

is

the

inception

date

of

the

oldest

share

class.

3

The

performance

information

for

Class

R6

and

Class

E

prior

to

the

classes’

respective

inception

dates

is

that

of

the

Institutional

Class

of

Neuberger

Berman

Absolute

Return

Multi-Manager

Fund.

The

performance

information

for

the

Institutional

Class

has

not

been

adjusted

to

take

into

account

differences

in

class

specific

operating

expenses.

The

Institutional

Class

has

higher

expenses

and

typically

lower

returns

than

Class

R6

and

Class

E.

For

more

complete

information

on

any

of

the

Neuberger

Berman

Alternative

Funds,

call

us

at

(800)

877-9700,

or

visit

our

website

at

www.nb.com.

7

Glossary

of

Indices

(Unaudited)

Bloomberg

U.S.

Aggregate

Bond

Index:

The

index

measures

the

investment

grade,

U.S.

dollar-denominated,

fixed-rate,

taxable

bond

market

and

includes

Treasuries,

government-related

and

corporate

securities,

mortgage-backed

securities

(MBS)

(agency

fixed-rate

and

hybrid

adjustable

rate

mortgage

(ARM)

pass-throughs),

asset-backed

securities

(ABS),

and

commercial

mortgage-backed

securities

(CMBS)

(agency

and

nonagency).

Effective

August

24,

2021

all

Bloomberg

Barclays

fixed

income

indices

were

rebranded

as

“Bloomberg

indices”.

HFRX

®

Global

Hedge

Fund

Index:

The

index

is

designed

to

be

representative

of

the

overall

composition

of

the

hedge

fund

universe.

It

is

comprised

of

all

eligible

hedge

fund

strategies;

including

but

not

limited

to

convertible

arbitrage,

distressed

securities,

equity

hedge,

equity

market

neutral,

event

driven,

macro,

merger

arbitrage,

and

relative

value

arbitrage.

The

strategies

are

asset

weighted

based

on

the

distribution

of

assets

in

the

hedge

fund

industry.

Constituent

funds

are

selected

from

an

eligible

pool

of

the

more

than

7,500

funds

worldwide

that

report

to

the

Hedge

Fund

Research

(HFR)

Database.

Constituent

funds

must

meet

all

of

the

following

criteria:

report

monthly;

report

performance

net

of

all

fees;

be

U.S.

dollar

denominated;

be

active

and

accepting

new

investments;

have

a

minimum

24

month

track

record;

and

the

fund’s

manager

must

have

at

least

$50

million

in

assets

under

management.

The

index

is

rebalanced

quarterly.

S&P

500

®

Index:

The

index

is

a

float-adjusted

market

capitalization-weighted

index

that

focuses

on

the

large-cap

segment

of

the

U.S.

equity

market,

and

includes

a

significant

portion

of

the

total

value

of

the

market.

8

(This

page

intentionally

left

blank)

9

Information

About

Your

Fund’s

Expenses

(Unaudited)

As

a

Fund

shareholder,

you

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

purchase

payments

or

redemption

proceeds

(if

applicable);

and

(2)

ongoing

costs,

including

management

fees,

distribution

and/or

service

(12b-1)

fees

(if

applicable),

and

other

Fund

expenses.

This

example

is

intended

to

help

you

understand

your

ongoing

costs

(in

U.S.

dollars)

of

investing

in

the

Fund

and

compare

these

costs

with

the

ongoing

costs

of

investing

in

other

mutual

funds.

This

table

is

designed

to

provide

information

regarding

costs

related

to

your

investments.

The

following

examples

are

based

on

an

investment

of

$1,000

made

at

the

beginning

of

the

six

month

period

ended

October

31,

2023

and

held

for

the

entire

period.

The

table

illustrates

the

Fund’s

costs

in

two

ways:

Please

note

that

the

expenses

in

the

table

are

meant

to

highlight

your

ongoing

costs

only

and

do

not

include

any

transaction

costs,

such

as

sales

charges

(loads)

(if

applicable).

Therefore,

the

information

under

the

heading

“Hypothetical

(5%

annual

return

before

expenses)”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

determine

the

relative

total

costs

of

owning

different

funds.

In

addition,

if

these

transaction

costs

were

included,

your

costs

would

have

been

higher.

Actual

Expenses

and

Performance:

The

first

section

of

the

table

provides

information

about

actual

account

values

and

actual

expenses

in

dollars,

based

on

the

Fund’s

actual

performance

during

the

period

indicated.

You

may

use

the

information

in

this

line,

together

with

the

amount

you

invested,

to

estimate

the

expenses

you

paid

over

the

period.

Simply

divide

your

account

value

by

$1,000

(for

example,

an

$8,600

account

value

divided

by

$1,000

=

8.6),

then

multiply

the

result

by

the

number

in

the

first

section

of

the

table

under

the

heading

entitled

“Expenses

Paid

During

the

Period”

to

estimate

the

expenses

you

paid

over

the

period.

Hypothetical

Example

for

Comparison

Purposes:

The

second

section

of

the

table

provides

information

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

at

5%

per

year

before

expenses.

This

return

is

not

the

Fund’s

actual

return.

The

hypothetical

account

values

and

expenses

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period.

You

may

use

this

information

to

compare

the

ongoing

costs

of

investing

in

the

Fund

versus

other

funds.

To

do

so,

compare

the

expenses

shown

in

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

10

Expense

Example

(Unaudited)

Neuberger

Berman

Alternative

Funds

ACTUAL

HYPOTHETICAL

(5%

ANNUAL

RETURN

BEFORE

EXPENSES)

Absolute

Return

Multi-Manager

Fund

Beginning

Account

Value

5/1/2023

Ending

Account

Value

10/31/2023

Expenses

Paid

During

the

Period

5/1/2023

-

10/31/2023

(1)(3)

Expense

Ratio

Beginning

Account

Value

5/1/2023

Ending

Account

Value

10/31/2023

Expenses

Paid

During

the

Period

5/1/2023

-

10/31/2023

(2)(3)

Expense

Ratio

Institutional

Class

$1,000.00

$1,020.10

$9.83

1.93%

$1,000.00

$1,015.48

$9.80

1.93%

Class

A

$1,000.00

$1,016.90

$11.64

2.29%

$1,000.00

$1,013.66

$11.62

2.29%

Class

C

$1,000.00

$1,013.20

$15.43

3.04%

$1,000.00

$1,009.88

$15.40

3.04%

Class

R6

$1,000.00

$1,019.20

$10.59

2.08%

$1,000.00

$1,014.72

$10.56

2.08%

Class

E

$1,000.00

$1,025.20

$3.32

0.65%

$1,000.00

$1,021.93

$3.31

0.65%

(1)

For

each

class,

expenses

are

equal

to

the

annualized

expense

ratio

for

the

class,

multiplied

by

the

average

account

value

over

the

period,

multiplied

by

184/365

(to

reflect

the

one-half

year

period

shown),

unless

otherwise

indicated.

(2)

Hypothetical

expenses

are

equal

to

the

annualized

expense

ratios

for

each

class,

multiplied

by

the

average

account

value

over

the

period

(assuming

a

5%

annual

return),

multiplied

by

184/365

(to

reflect

the

one-half

year

period

shown).  

(3)

Includes

expenses

of

the

Fund's

subsidiary

(See

Note

A

of

the

Notes

to

Consolidated

Financial

Statements).

11

See

Notes

to

Consolidated

Financial

Statements

Consolidated

Schedule

of

Investments

Absolute

Return

Multi-Manager

Fund^

October

31,

2023

Investments

Shares

Value

Long

Positions

91.2%

Common

Stocks

30.9%

Automobile

Components

0.0%

(a)

Garrett

Motion,

Inc.

(Switzerland)

*

5,118

$

36,133

Banks

0.2%

American

National

Bankshares

,

Inc.

3,826

146,000

First

Horizon

Corp.

8,977

96,503

Lakeland

Bancorp,

Inc.

3,164

35,690

278,193

Biotechnology

2.5%

Abcam

plc,

ADR

(United

Kingdom)

*

43,460

996,103

Grifols

SA,

ADR

(Spain)

*

3,800

30,742

Intercept

Pharmaceuticals,

Inc.

*

3,522

66,671

Mirati

Therapeutics,

Inc.

*

10,912

605,943

Orchard

Therapeutics

plc,

ADR

(United

Kingdom)

*

9,738

154,932

Point

Biopharma

Global,

Inc.

*

10,750

136,095

Seagen

,

Inc.

*

5,360

1,140,662

3,131,148

Broadline

Retail

2.9%

Alibaba

Group

Holding

Ltd.,

ADR

(China)

*

8,000

660,320

Alibaba

Group

Holding

Ltd.

(China)

*

21,712

223,527

Amazon.com,

Inc.

*

4,531

603,031

eBay,

Inc.

5,072

198,974

JD.com,

Inc.,

Class

A

(China)

723

9,192

MercadoLibre

,

Inc.

(Brazil)

*

560

694,814

Prosus

NV

(China)

*

41,290

1,154,699

3,544,557

Capital

Markets

0.4%

Avantax

,

Inc.

*

3,500

90,335

Canaccord

Genuity

Group,

Inc.

(Canada)

26,200

135,463

Greenhill

&

Co.,

Inc.

6,308

93,421

Pegasus

Acquisition

Co.

Europe

BV,

Class

A

(Netherlands)

*(b)(c)

12,042

—

Pershing

Square,

Escrow

*(b)

6,100

915

Sculptor

Capital

Management,

Inc.

8,450

106,893

427,027

Chemicals

0.5%

Chase

Corp.

4,534

576,090

Commercial

Services

&

Supplies

0.2%

SP

Plus

Corp.

*

5,400

272,862

Investments

Shares

Value

Communications

Equipment

0.0%

(a)

Comtech

Telecommunications

Corp.

3,250

$

39,650

Consumer

Staples

Distribution

&

Retail

0.9%

Albertsons

Cos.,

Inc.,

Class

A

39,823

864,159

Almacenes

Exito

SA,

ADR

(Colombia)

*

1,925

13,398

Cia

Brasileira

de

Distribuicao

,

ADR

(Brazil)

*

1,071

707

Cia

Brasileira

de

Distribuicao

,

ADR

(Brazil)

*

2,780

1,835

Fix

Price

Group

plc,

GDR

(Russia)

*(b)(c)(d)

144

—

Sendas

Distribuidora

SA,

ADR

(Brazil)

4,023

43,529

Wal-Mart

de

Mexico

SAB

de

CV

(Mexico)

45,582

163,149

X5

Retail

Group

NV,

GDR

(Russia)

*(b)(c)(d)

4,390

—

1,086,777

Containers

&

Packaging

0.1%

Westrock

Co.

3,875

139,229

Diversified

Consumer

Services

0.1%

Arco

Platform

Ltd.,

Class

A

(Brazil)

*

12,434

172,460

Diversified

Telecommunication

Services

0.3%

Altaba

,

Inc.

Escrow

*(b)

128,456

298,660

Telesat

Corp.

(Canada)

*

4,885

49,827

348,487

Electric

Utilities

1.0%

PNM

Resources,

Inc.

28,630

1,209,904

Entertainment

0.2%

Atlanta

Braves

Holdings,

Inc.,

Class

C

*

7,104

247,077

Financial

Services

0.2%

PayPal

Holdings,

Inc.

*

5,072

262,730

Food

Products

1.8%

Hostess

Brands,

Inc.

*

17,913

598,294

Nestle

SA

(Registered)

12,689

1,368,366

Sovos

Brands,

Inc.

*(e)

13,650

296,342

2,263,002

Gas

Utilities

0.1%

Brookfield

Infrastructure

Corp.,

Class

A

(Canada)

1,145

29,495

Southwest

Gas

Holdings,

Inc.

1,200

70,332

99,827

Health

Care

Equipment

&

Supplies

0.1%

Globus

Medical,

Inc.,

Class

A

*

204

9,325

Consolidated

Schedule

of

Investments

Absolute

Return

Multi-Manager

Fund^

(cont’d)

12

See

Notes

to

Consolidated

Financial

Statements

Investments

Shares

Value

Opsens

,

Inc.

(Canada)

*

39,850

$

81,898

91,223

Health

Care

Providers

&

Services

0.7%

Amedisys,

Inc.

*

8,878

812,248

Shanghai

Pharmaceuticals

Holding

Co.

Ltd.,

Class

H

(China)

30,284

44,057

Sinopharm

Group

Co.

Ltd.,

Class

H

(China)

16,945

40,521

896,826

Health

Care

Technology

0.6%

NextGen

Healthcare,

Inc.

*

22,596

540,496

Tabula

Rasa

HealthCare,

Inc.

*

14,399

150,182

690,678

Hotel

&

Resort

REITs

0.1%

Hersha

Hospitality

Trust,

Class

A,

REIT

15,911

157,837

Hotels,

Restaurants

&

Leisure

1.0%

Booking

Holdings,

Inc.

*

188

524,437

Deliveroo

plc,

Class

A

(United

Kingdom)

*(d)

11,689

18,470

Expedia

Group,

Inc.

*

2,348

223,741

NEOGAMES

SA

(Israel)

*

11,611

299,564

Playtech

plc

(United

Kingdom)

*

21,590

103,024

1,169,236

Household

Durables

0.2%

iRobot

Corp.

*

825

27,167

Lennar

Corp.,

Class

B

2,800

276,108

303,275

Household

Products

0.2%

Spectrum

Brands

Holdings,

Inc.

2,736

206,076

Insurance

0.8%

AIA

Group

Ltd.

(Hong

Kong)

72,499

629,567

American

Equity

Investment

Life

Holding

Co.

2,000

105,920

Argo

Group

International

Holdings

Ltd.

8,014

239,138

974,625

Interactive

Media

&

Services

2.0%

Alphabet,

Inc.,

Class

A

*

9,090

1,127,887

Baidu,

Inc.,

ADR

(China)

*

749

78,645

Baidu,

Inc.,

Class

A

(China)

*

1,931

25,352

Meta

Platforms,

Inc.,

Class

A

*

3,979

1,198,753

VK

Co.

Ltd.,

GDR

(Russia)

*(b)(c)(d)

1,305

—

Yandex

NV,

Class

A

(Russia)

*(b)(c)

1,428

—

2,430,637

Investments

Shares

Value

IT

Services

0.0%

(a)

Chindata

Group

Holdings

Ltd.,

ADR

(China)

*

4,191

$

37,216

Life

Sciences

Tools

&

Services

0.5%

Eurofins

Scientific

SE

(Luxembourg)

11,557

586,354

Gerresheimer

AG

(Germany)

459

42,812

Olink

Holding

AB,

ADR

(Sweden)

*

1,750

43,610

672,776

Machinery

0.0%

(a)

H2O

Innovation,

Inc.

(Canada)

*

2,450

7,456

Velan,

Inc.

(Canada)

5,000

21,020

28,476

Media

1.0%

Aimia

,

Inc.

(Canada)

*

18,800

43,518

Stroeer

SE

&

Co.

KGaA

(Germany)

7,211

330,328

TEGNA,

Inc.

55,120

799,791

WideOpenWest

,

Inc.

*

2,582

18,177

1,191,814

Metals

&

Mining

0.6%

Allkem

Ltd.

(Australia)

*

15,983

97,667

ArcelorMittal

SA

(Luxembourg)

4,832

106,919

Artemis

Gold,

Inc.

(Canada)

*

605

2,221

Newcrest

Mining

Ltd.

(Australia)

(c)

27,089

406,056

United

States

Steel

Corp.

1,850

62,696

Vale

SA,

Class

B,

ADR

(Brazil)

8,667

118,825

794,384

Oil,

Gas

&

Consumable

Fuels

2.7%

Denbury,

Inc.

*

16,733

1,487,396

Earthstone

Energy,

Inc.,

Class

A

*

3,444

72,910

Euronav

NV

(Belgium)

7,821

139,448

Euronav

NV

(Belgium)

2,400

42,961

Hess

Corp.

1,342

193,785

LUKOIL

PJSC,

ADR

(Russia)

*(b)(c)

661

—

Petroleo

Brasileiro

SA,

ADR

(Brazil)

9,839

147,585

Pioneer

Natural

Resources

Co.

5,089

1,216,271

3,300,356

Passenger

Airlines

0.1%

American

Airlines

Group,

Inc.

*

768

8,563

American

Airlines

Group,

Inc.

Escrow

*(b)(c)

14,383

144

Spirit

Airlines,

Inc.

4,996

57,354

66,061

Consolidated

Schedule

of

Investments

Absolute

Return

Multi-Manager

Fund^

(cont’d)

13

See

Notes

to

Consolidated

Financial

Statements

Investments

Shares

Value

Pharmaceuticals

1.0%

Aralez

Pharmaceuticals,

Inc.

(Canada)

*(b)

345

$

—

Dr

Reddy's

Laboratories

Ltd.,

ADR

(India)

3,006

195,781

Hikma

Pharmaceuticals

plc

(Jordan)

7,575

175,509

Roche

Holding

AG

3,378

870,543

Teva

Pharmaceutical

Industries

Ltd.,

ADR

(Israel)

*

1,671

14,337

1,256,170

Professional

Services

0.2%

SGS

SA

(Registered)

(Switzerland)

3,576

292,054

Real

Estate

Management

&

Development

0.2%

Seritage

Growth

Properties,

Class

A,

REIT

*

33,123

239,811

Retail

REITs

0.0%

(a)

RPT

Realty,

REIT

4,889

52,752

Semiconductors

&

Semiconductor

Equipment

0.6%

ASML

Holding

NV

(Netherlands)

118

70,932

Magnachip

Semiconductor

Corp.

(South

Korea)

*

11,350

83,877

Silicon

Motion

Technology

Corp.,

ADR

(Taiwan)

*

3,262

174,778

SunEdison,

Inc.

*(b)(c)

16,689

—

Tower

Semiconductor

Ltd.

(Israel)

*

15,700

361,414

691,001

Software

3.6%

EngageSmart

,

Inc.

*

2,956

66,953

LiveVox

Holdings,

Inc.

*

21,209

76,565

New

Relic,

Inc.

*

12,263

1,062,834

SAP

SE

(Germany)

10,254

1,375,393

Splunk,

Inc.

*

4,700

691,652

VMware,

Inc.,

Class

A

*(b)(c)

7,577

1,156,250

4,429,647

Specialty

Retail

0.2%

ASOS

plc

(United

Kingdom)

*

1,085

5,242

Chico's

FAS,

Inc.

*

7,250

54,230

GNC

Holdings,

Inc.

Escrow

*(b)(c)

5,700

—

Sportsman's

Warehouse

Holdings,

Inc.

*

36,345

184,996

Toys

R

Us,

Inc.

*(b)

2,810

14,050

258,518

Technology

Hardware,

Storage

&

Peripherals

1.2%

Apple,

Inc.

4,740

809,450

Avid

Technology,

Inc.

*

7,291

197,003

Investments

Shares

Value

Samsung

Electronics

Co.

Ltd.,

GDR

(South

Korea)

(d)

357

$

446,420

Stratasys

Ltd.

*

4,644

47,229

1,500,102

Textiles,

Apparel

&

Luxury

Goods

1.1%

Capri

Holdings

Ltd.

*

23,367

1,195,923

Tapestry,

Inc.

7,262

200,141

1,396,064

Trading

Companies

&

Distributors

0.7%

Brenntag

SE

(Germany)

4,444

330,463

IMCD

NV

(Netherlands)

2,702

325,309

Textainer

Group

Holdings

Ltd.

(China)

5,230

256,897

912,669

Wireless

Telecommunication

Services

0.1%

Millicom

International

Cellular

SA

(Guatemala)

*

4,950

77,764

Total

Common

Stocks

(Cost

$39,855,031

)

38,253,201

Preferred

Stocks

0.1%

Broadline

Retail

0.0%

(a)

Qurate

Retail,

Inc.

8.00%,

3/15/2031

991

23,586

Trading

Companies

&

Distributors

0.1%

Textainer

Group

Holdings

Ltd.,

Series

B,

6.25%,

12/15/2026

(China)

(f)

1,400

33,950

Total

Preferred

Stocks

(Cost

$77,863)

57,536

Principal

Amount

Corporate

Bonds

0.0%

Independent

Power

and

Renewable

Electricity

Producers

0.0%

GenOn

Energy,

Inc.

Escrow

,

9.50%,

10/15/2018

(b)(c)(g)

$

354,000

—

9.88%,

10/15/2020

(b)(c)(g)

1,655,000

—

Total

Corporate

Bonds

(Cost

$—

)

—

Insurance

Linked

Securities

6.5%

2001

Cat

RE

Ltd.

(Bermuda)

Series

A,

(3

Month

Treasury

Bill

Rate

+

12.66%),

18.17%,

1/8/2024

(h)(i)

750,000

747,750

Consolidated

Schedule

of

Investments

Absolute

Return

Multi-Manager

Fund^

(cont’d)

14

See

Notes

to

Consolidated

Financial

Statements

Investments

Principal

Amount

Value

Atlas

Capital

Reinsurance

2020

DAC

(Ireland)

Series

2020,

(3

Month

Treasury

Bill

Rate

+

8.30%),

13.69%,

6/10/2024

(h)(i)

$

700,000

$

711,620

Gateway

Re

Ltd.

Series

A,

(1

Month

Treasury

Bill

Rate

+

13.00%),

18.48%,

2/24/2026

(h)(i)

250,000

263,925

Herbie

Re

Ltd.

(Bermuda)

Series

B,

(3

Month

Treasury

Bill

Rate

+

9.72%),

15.17%,

1/8/2025

(h)(i)

750,000

746,850

Series

A,

(3

Month

Treasury

Bill

Rate

+

6.73%),

12.18%,

1/8/2025

(h)(i)

250,000

245,250

Hestia

Re

Ltd.

(Bermuda)

Series

A,

(1

Month

Treasury

Bill

Rate

+

9.75%),

15.20%,

4/7/2026

(h)(i)

500,000

518,400

Kendall

Re

Ltd.

(Bermuda)

Series

B,

(3

Month

Treasury

Bill

Rate

+

6.25%),

11.65%,

5/2/2024

(h)(i)

275,000

274,175

Kilimanjaro

III

Re

Ltd.

(Bermuda)

Series

B,

(3

Month

Treasury

Bill

Rate

+

9.91%),

15.42%,

12/19/2024

(h)(i)

250,000

250,750

Lightning

Re

Series

2023-

1,

(3

Month

Treasury

Bill

Rate

+

11.00%),

16.44%,

3/31/2026

(h)(i)

500,000

524,400

Matterhorn

Re

Ltd.

(Bermuda)

(SOFR

+

7.75%),

13.09%,

3/24/2025

(h)(i)

500,000

497,000

Investments

Principal

Amount

Value

Mystic

Re

IV

Ltd.

(Bermuda)

Series

A,

(3

Month

Treasury

Bill

Rate

+

9.75%),

15.26%,

1/8/2024

(h)(i)

$

750,000

$

749,250

Northshore

Re

II

Ltd.

(Bermuda)

Series

A,

(3

Month

Treasury

Bill

Rate

+

5.75%),

11.23%,

1/8/2024

(h)(i)

500,000

499,000

Purple

Re

Ltd.

(Bermuda)

Series

A,

(1

Month

Treasury

Bill

Rate

+

10.00%),

15.47%,

6/5/2026

(h)(i)

250,000

253,175

Tailwind

RE

Ltd.

(Bermuda)

Series

B,

(3

Month

Treasury

Bill

Rate

+

8.75%),

14.19%,

1/8/2025

(h)(i)

750,000

732,375

Titania

RE

Ltd.

(Bermuda)

Series

A,

(1

Month

Treasury

Bill

Rate

+

6.50%),

11.95%,

12/27/2024

(h)(i)

250,000

242,425

Series

A,

(1

Month

Treasury

Bill

Rate

+

12.25%),

17.70%,

2/27/2026

(h)(i)

750,000

802,500

Total

Insurance

Linked

Securities

(Cost

$7,686,220)

8,058,845

Loan

Assignments

0.0%

(a)

Media

0.0%

(a)

Deluxe

Entertainment

Services

Group,

Inc.,

1st

Lien

Term

Loan

,

(ICE

LIBOR

USD

3

Month

+

5.00%),

12.50%

Cash/1.50%

PIK,

due

3/25/2024

(b)(c)(h)(j)

14,162

5,632

Deluxe

Entertainment

Services

Group,

Inc.,

2nd

Lien

Term

Loan

,

Consolidated

Schedule

of

Investments

Absolute

Return

Multi-Manager

Fund^

(cont’d)

15

See

Notes

to

Consolidated

Financial

Statements

All

bonds

are

denominated

in

US

dollars,

unless

noted

otherwise.

Investments

Principal

Amount

Value

(ICE

LIBOR

USD

3

Month

+

6.00%),

13.50%

Cash/2.50%

PIK,

due

9/25/2024

(b)(c)(h)(j)

$

153,519

$

—

Total

Loan

Assignments

(Cost

$104,127)

5,632

No.

of

Rights

Rights

0.1%

Biotechnology

0.1%

Achillion

Pharmaceuticals,

Inc.,

CVR

*(b)

23,300

11,650

Adamas

Pharmaceuticals,

Inc.,

CVR

*(b)

24,600

1,230

Akouos

,

Inc.,

CVR

*(b)

38,850

29,137

Ambit

Biosciences

Corp.,

CVR

*(b)(c)

70,000

—

Clementia

Pharmaceuticals,

Inc.,

CVR

(France)

*(b)(c)

3,200

—

Tobira

Therapeutics,

Inc.,

CVR

*(b)(c)

6,900

—

42,017

Financial

Services

0.0%

(a)

Resolute

Forest

Products,

Inc.

CVR

*(b)

5,750

11,500

Health

Care

Equipment

&

Supplies

0.0%

(a)

ABIOMED,

Inc.,

CVR

*(b)

3,300

5,775

IT

Services

0.0%

(a)

Flexion

Therapeutics,

Inc.,

CVR

*(b)

18,500

12,025

Metals

&

Mining

0.0%

(a)

Kinross

Gold

Corp.,

CVR

(Canada)

*(b)(c)

4,800

3

Pan

American

Silver

Corp.,

CVR

(Canada)

*

39,600

19,840

19,843

Total

Rights

(Cost

$71,472)

91,160

No.

of

Warrants

Warrants

0.0%

(a)

Leisure

Products

0.0%

(a)

Tonies

SE,

expiring

4/30/2026

(Germany)

*

(Cost

$—)

4,329

229

Investments

Shares

Value

Short-Term

Investments

53.6%

Investment

Companies

53.6%

Fidelity

Treasury

Only

Portfolio,

Institutional

Class,

5.29%

(k)

66,330,745

$

66,330,745

Morgan

Stanley

Institutional

Liquidity

Funds

Treasury

Securities

Portfolio,

Institutional

Class,

5.24%

(k)

1

1

Total

Investment

Companies

(Cost

$66,330,746)

66,330,746

Total

Long

Positions

(Cost

$114,125,459

)

112,797,349

Short

Positions

(3.8)%

(l)

Common

Stocks

Sold

Short

(3.8)%

Banks

(0.2)%

Atlantic

Union

Bankshares

Corp.

(5,169)

(148,919)

Provident

Financial

Services,

Inc.

(2,632)

(36,980)

(185,899)

Chemicals

(0.1)%

Livent

Corp.

(5,282)

(77,064)

Food

Products

(0.0)%

(a)

J

M

Smucker

Co.

(The)

(287)

(32,672)

Household

Durables

(0.2)%

Lennar

Corp.,

Class

A

(2,240)

(238,963)

Metals

&

Mining

(0.3)%

Newmont

Corp.

(10,835)

(405,987)

Oil,

Gas

&

Consumable

Fuels

(2.4)%

Chevron

Corp.

(1,376)

(200,525)

Exxon

Mobil

Corp.

(26,025)

(2,754,746)

Permian

Resources

Corp.

(4,977)

(72,515)

(3,027,786)

Retail

REITs

(0.0)%

(a)

Kimco

Realty

Corp.,

REIT

(2,957)

(53,049)

Semiconductors

&

Semiconductor

Equipment

(0.6)%

Broadcom,

Inc.

(829)

(697,496)

Total

Common

Stocks

Sold

Short

(Proceeds

$(4,653,886))

(4,718,916)

Total

Short

Positions

(Proceeds

$(4,653,886))

(4,718,916)

Total

Investments

87.4%

(Cost

$109,471,573

)

108,078,433

Other

Assets

Less

Liabilities

12.6%

(m)

15,581,268

Net

Assets

100.0%

$123,659,701

Consolidated

Schedule

of

Investments

Absolute

Return

Multi-Manager

Fund^

(cont’d)

16

See

Notes

to

Consolidated

Financial

Statements

*

Non-income

producing

security.

(a)

Represents

less

than

0.05%

of

net

assets

of

the

Fund.

(b)

Value

determined

using

significant

unobservable

inputs.

(c)

Security

fair

valued

as

of

October

31,

2023,

in

accordance

with

procedures

approved

by

the

valuation

designee.

Total

value

of

all

such

securities

at

October

31,

2023,

amounted

to

$1,568,085,

which

represents

1.3%

of

net

assets

of

the

Fund.

(d)

Security

exempt

from

registration

pursuant

to

Regulation

S

under

the

Securities

Act

of

1933,

as

amended.

Regulation

S

applies

to

securities

offerings

that

are

made

outside

of

the

United

States

and

do

not

involve

directed

selling

efforts

in

the

United

States

and

as

such

may

have

restrictions

on

resale.

At

October

31,

2023,

these

securities

amounted

to

$464,890

of

long

positions

which

represents

0.4%

of

net

assets

of

the

Fund.

(e)

All

or

a

portion

of

this

security

is

pledged

as

collateral

for

options

written.

(f)

Perpetual

security.

Perpetual

securities

have

no

stated

maturity

date,

but

they

may

be

called/redeemed

by

the

issuer.

The

date

shown

reflects

the

next

call

date.

(g)

Defaulted

security.

(h)

Variable

or

floating

rate

security.

The

interest

rate

shown

was

the

current

rate

as

of

October

31,

2023,

and

changes

periodically.

(i)

Securities

were

purchased

or

sold

short

under

Rule

144A

of

the

Securities

Act

of

1933,

as

amended,

or

are

otherwise

restricted

and,

unless

registered

under

the

Securities

Act

of

1933

or

exempted

from

registration,

may

only

be

sold

to

qualified

institutional

investors

or

may

have

other

restrictions

on

resale.

At

October

31,

2023,

these

securities

amounted

to

$8,058,845

of

long

positions,

which

represents

6.5%

of

net

assets

of

the

Fund.

(j)

Payment

in-kind

security.

(k)

Represents

7-day

effective

yield

as

of

October

31,

2023.

(l)

At

October

31,

2023,

the

Fund

had

approximately

$4,569,836

deposited

in

one

or

more

accounts

to

satisfy

collateral

requirements

for

borrowing

in

connection

with

securities

sold

short.

(m)

Includes

the

impact

of

the

Fund’s

open

positions

in

derivatives

at

October

31,

2023.

Abbreviations

ADR

American

Depositary

Receipt

CVR

Contingent

Value

Rights

GDR

Global

Depositary

Receipt

ICE

Intercontinental

Exchange

LIBOR

London

Interbank

Offered

Rate

PJSC

Public

Joint

Stock

Company

SA

Société

Anonyme

USD

United

States

Dollar

Consolidated

Schedule

of

Investments

Absolute

Return

Multi-Manager

Fund^

(cont’d)

17

See

Notes

to

Consolidated

Financial

Statements

LONG

POSITIONS

BY

COUNTRY

Country

Investments

at

Value

Percentage

of

Net

Assets

United

States

$

26,890,472

21.7‌%

Bermuda

6,558,900

5.3‌%

China

2,564,376

2.1‌%

Germany

2,079,225

1.7‌%

United

Kingdom

1,277,771

1.0‌%

Brazil

1,179,755

1.0‌%

Ireland

711,620

0.6‌%

Luxembourg

693,273

0.6‌%

Israel

675,315

0.6‌%

Hong

Kong

629,567

0.5‌%

South

Korea

530,297

0.4‌%

Australia

503,723

0.4‌%

Netherlands

396,241

0.3‌%

Canada

390,741

0.3‌%

Switzerland

328,187

0.3‌%

India

195,781

0.2‌%

Belgium

182,409

0.2‌%

Jordan

175,509

0.1‌%

Taiwan

174,778

0.1‌%

Mexico

163,149

0.1‌%

Guatemala

77,764

0.1‌%

Sweden

43,610

0.0‌%

(a)

Spain

30,742

0.0‌%

(a)

Colombia

13,398

0.0‌%

(a)

Short-Term

Investments

and

Other

Assets-Net

81,912,014

66.2‌%

Short

Positions

(See

summary

below)

(4,718,916)

(3.8‌)%

$

123,659,701

100.0‌%

SHORT

POSITIONS

BY

COUNTRY

Country

Investments

at

Value

Percentage

of

Net

Assets

United

States

$

(4,718,916)

(3.8‌)%

Total

Short

Positions

$(4,718,916)

(3.8‌)%

(a)

Represents

less

than

0.05%

of

net

assets

of

the

Fund.

Consolidated

Schedule

of

Investments

Absolute

Return

Multi-Manager

Fund^

(cont’d)

18

See

Notes

to

Consolidated

Financial

Statements

Derivative

Instruments

Futures

contracts

("futures")

At

October

31,

2023,

open

positions

in

futures

for

the

Fund

were

as

follows:

Description

Number

of

Contracts

Expiration

Date

Notional

Amount

Value

and

Unrealized

Appreciation/

(Depreciation)

Long

Contracts

Brent

Crude

Oil

1

11/2023

$

85,020

$

(4,971)

NY

Harbor

ULSD

1

11/2023

122,220

(1,405)

100

oz

Gold

6

12/2023

1,196,580

15,528

Brent

Crude

Oil

1

12/2023

84,450

(4,541)

Cocoa

14

12/2023

534,380

18,363

Euro-Bund

2

12/2023

272,969

2,247

Euro-OAT

1

12/2023

130,453

327

Foreign

Exchange

MXN/USD

2

12/2023

55,140

(2,494)

Foreign

Exchange

USD/NOK

1

12/2023

99,830

4,350

Foreign

Exchange

ZAR/USD

2

12/2023

53,425

972

Live

Cattle

1

12/2023

73,420

(1,412)

LME

Copper

Base

Metal

1

12/2023

91,225

(252)

Low

Sulphur

Gasoil

1

12/2023

85,075

(6,001)

Soybean

Meal

7

12/2023

301,700

6,242

Brent

Crude

Oil

1

1/2024

83,890

(2,611)

Fcoj

-a

1

1/2024

57,555

(610)

Robusta

Coffee

6

1/2024

141,960

(4,351)

WTI

Crude

Oil

1

1/2024

79,960

(6,592)

Sugar

No.

11

19

2/2024

576,475

(936)

Cocoa

1

3/2024

38,470

(113)

3

Month

SONIA

12

9/2024

3,460,022

2,172

WTI

Crude

Oil

1

11/2024

75,690

(1,652)

3

Month

SONIA

7

12/2024

2,022,600

841

3

Month

EURIBOR

10

3/2025

2,566,818

920

3

Month

SONIA

2

3/2025

579,132

255

3

Month

SONIA

6

6/2025

1,740,494

449

3

Month

SONIA

3

9/2025

871,295

832

3

Month

SONIA

8

12/2025

2,325,277

887

3

Month

EURIBOR

16

3/2026

4,113,681

240

3

Month

SONIA

5

3/2026

1,454,058

935

3

Month

SONIA

8

6/2026

2,327,344

751

Total

Long

Contracts

$

25,700,608

$18,370

Consolidated

Schedule

of

Investments

Absolute

Return

Multi-Manager

Fund^

(cont’d)

19

See

Notes

to

Consolidated

Financial

Statements

Description

Number

of

Contracts

Expiration

Date

Notional

Amount

Value

and

Unrealized

Appreciation/

(Depreciation)

Short

Contracts

CAC

40

10

Euro

Index

(2)

11/2023

$

(145,954)

$

3,377

Hang

Seng

Index

(4)

11/2023

(438,171)

1,675

HSCEI

(18)

11/2023

(677,307)

1,551

IFSC

NIFTY

50

Index

(3)

11/2023

(114,978)

2,332

MSCI

Singapore

Index

(26)

11/2023

(516,430)

786

Natural

Gas

(1)

11/2023

(35,750)

(1,282)

OMXS30

Index

(5)

11/2023

(93,091)

2,541

SGX

FTSE

China

A50

Index

(46)

11/2023

(551,862)

(6,848)

SGX

FTSE

Taiwan

Index

(2)

11/2023

(110,100)

298

Australia

10

Year

Bond

(17)

12/2023

(1,167,305)

59,421

Australia

3

Year

Bond

(58)

12/2023

(3,839,843)

45,056

Canada

10

Year

Bond

(19)

12/2023

(1,574,667)

26,821

Canada

10

Year

Bond

(5)

12/2023

(414,386)

12,473

Corn

(13)

12/2023

(311,187)

3,743

EURO

STOXX

50

Index

(4)

12/2023

(172,259)

5,142

Euro-

Bobl

(28)

12/2023

(3,445,301)

(3,675)

Euro-BTP

(2)

12/2023

(233,248)

(1,968)

Euro-BTP

(1)

12/2023

(116,624)

4,483

Euro-Bund

(13)

12/2023

(1,774,296)

12,139

Euro-

Buxl

(4)

12/2023

(509,666)

(239)

Euro-OAT

(9)

12/2023

(1,174,078)

572

Euro-Schatz

(44)

12/2023

(4,896,569)

(5,190)

Foreign

Exchange

AUD/USD

(138)

12/2023

(8,765,760)

107,364

Foreign

Exchange

CAD/USD

(5)

12/2023

(360,825)

3,276

Foreign

Exchange

CHF/USD

(8)

12/2023

(1,105,300)

22,327

Foreign

Exchange

EUR/USD

(87)

12/2023

(11,530,219)

183,812

Foreign

Exchange

GBP/USD

(37)

12/2023

(2,810,613)

71,579

Foreign

Exchange

JPY/USD

(3)

12/2023

(249,244)

9,150

Foreign

Exchange

NZD/USD

(3)

12/2023

(174,705)

2,512

FTSE

100

Index

(3)

12/2023

(267,205)

1,631

FTSE/JSE

Top

40

Index

(3)

12/2023

(103,689)

5,471

Japan

10

Year

Bond

(4)

12/2023

(3,793,502)

27,227

KC

HRW

Wheat

(9)

12/2023

(283,162)

26,940

Lean

Hogs

(1)

12/2023

(28,690)

(2,163)

Long

Gilt

(11)

12/2023

(1,245,545)

(10,378)

Long

Gilt

(2)

12/2023

(226,463)

3,292

Milling

Wheat

No.

2

(25)

12/2023

(303,542)

4,424

MSCI

Emerging

Markets

E-Mini

Index

(12)

12/2023

(551,520)

12,568

Palladium

(2)

12/2023

(225,220)

16,354

Russell

2000

E-Mini

Index

(7)

12/2023

(583,940)

24,413

Consolidated

Schedule

of

Investments

Absolute

Return

Multi-Manager

Fund^

(cont’d)

20

See

Notes

to

Consolidated

Financial

Statements

Description

Number

of

Contracts

Expiration

Date

Notional

Amount

Value

and

Unrealized

Appreciation/

(Depreciation)

S&P

500

E-Mini

Index

(9)

12/2023

$

(1,895,513)

$

153,838

S&P/TSX

60

Index

(2)

12/2023

(327,384)

2,686

Short-Term

Euro-BTP

(21)

12/2023

(2,321,778)

(14,227)

Soybean

Oil

(2)

12/2023

(61,704)

2,257

SPI

200

Index

(4)

12/2023

(430,280)

8,256

U.S.

Treasury

2

Year

Note

(16)

12/2023

(3,238,750)

5,919

U.S.

Treasury

5

Year

Note

(30)

12/2023

(3,134,297)

22,457

U.S.

Treasury

10

Year

Note

(21)

12/2023

(2,229,609)

51,051

U.S.

Treasury

10

Year

Note

(15)

12/2023

(1,592,578)

47,971

U.S.

Treasury

Long

Bond

(10)

12/2023

(1,094,375)

46,955

U.S.

Treasury

Ultra

Bond

(5)

12/2023

(562,812)

30,649

Wheat

(10)

12/2023

(278,125)

13,325

Canola

(24)

1/2024

(234,713)

13,880

Platinum

(2)

1/2024

(94,490)

(3,041)

Rapeseed

(9)

1/2024

(205,099)

1,684

Soybean

(1)

1/2024

(65,525)

135

3

Month

Canadian

Bankers

Acceptance

(16)

3/2024

(2,726,375)

(4,763)

Corn

(2)

3/2024

(49,300)

(5)

Wheat

(2)

3/2024

(58,525)

895

3

Month

Canadian

Bankers

Acceptance

(9)

6/2024

(1,536,101)

(4,557)

3

Month

Canadian

Bankers

Acceptance

(1)

9/2024

(171,192)

(674)

3

Month

EURIBOR

(3)

9/2024

(766,871)

(2,118)

3

Month

SOFR

(40)

12/2024

(9,508,500)

1,940

3

Month

SOFR

(38)

3/2025

(9,058,725)

4,194

3

Month

SOFR

(37)

6/2025

(8,842,537)

(853)

3

Month

SOFR

(12)

9/2025

(2,872,800)

312

3

Month

SOFR

(28)

12/2025

(6,708,800)

4,203

3

Month

SOFR

(8)

3/2026

(1,917,200)

(129)

3

Month

SOFR

(28)

6/2026

(6,709,500)

12,753

3

Month

SOFR

(31)

6/2027

(7,420,625)

7,959

Total

Short

Contracts

$

(131,036,299)

$1,075,959

Total

Futures

$1,094,329

For

the

year

ended

October

31,

2023,

the

average

notional

value

for

the

months

where

the

Fund

had

futures

outstanding

was

$13,971,708

for

long

positions

and

$(104,739,787)

for

short

positions.

At

October

31,

2023,

the

Fund

had

$2,291,856

deposited

in

segregated

accounts

to

cover

margin

requirements

on

open

futures.

Consolidated

Schedule

of

Investments

Absolute

Return

Multi-Manager

Fund^

(cont’d)

21

See

Notes

to

Consolidated

Financial

Statements

Forward

foreign

currency

contracts

("forward

contracts")

At

October

31,

2023,

open

forward

contracts

for

the

Fund

were

as

follows:

Currenc

y

Purchased

Currency

Sold

Counterparty

Settlement

Date

Net

Unrealized

Appreciation/

(Depreciation)

USD

2,759,867

CHF

2,485,806

JPM

11/15/2023

$

23,283

USD

11,258

SEK

123,299

JPM

11/15/2023

206

AUD

8,820,000

JPY

830,696,838

SG

12/20/2023

77,698

AUD

140,000

USD

88,691

SG

12/20/2023

265

BRL**

1,900,000

USD

371,788

SG

12/20/2023

2,936

CHF

240,000

USD

264,241

SG

12/20/2023

1,093

CLP**

250,130,000

USD

274,263

SG

12/20/2023

4,383

CZK

6,600,000

USD

282,504

SG

12/20/2023

1,444

EUR

11,221

PLN

50,000

SG

12/20/2023

48

EUR

30,000

TRY

935,610

SG

12/20/2023

33

EUR

420,000

USD

444,548

SG

12/20/2023

881

GBP

40,000

USD

48,564

SG

12/20/2023

73

HUF

196,240,000

USD

535,333

SG

12/20/2023

3,673

ILS

1,000,000

USD

246,949

SG

12/20/2023

1,149

INR**

135,790,000

USD

1,627,652

SG

12/20/2023

547

MXN

190,000

USD

10,438

SG

12/20/2023

16

PHP**

13,040,000

USD

229,565

SG

12/20/2023

66

PLN

6,500,000

EUR

1,418,854

SG

12/20/2023

35,997

PLN

3,960,000

USD

919,570

SG

12/20/2023

19,110

SGD

510,000

USD

373,164

SG

12/20/2023

142

THB

29,440,000

USD

813,868

SG

12/20/2023

8,857

TRY

2,825,026

EUR

90,000

SG

12/20/2023

521

TRY

870,000

USD

29,291

SG

12/20/2023

264

USD

3,729,643

AUD

5,800,000

SG

12/20/2023

44,303

USD

794,218

BRL**

3,980,000

SG

12/20/2023

9,271

USD

6,930,547

CAD

9,430,000

SG

12/20/2023

124,642

USD

2,356,264

CHF

2,100,000

SG

12/20/2023

34,606

USD

349,385

CLP**

313,060,000

SG

12/20/2023

633

USD

1,092,260

CZK

25,080,000

SG

12/20/2023

13,251

USD

1,578,366

EUR

1,470,000

SG

12/20/2023

19,363

USD

1,425,863

GBP

1,160,000

SG

12/20/2023

15,383

USD

2,118,568

ILS

8,110,000

SG

12/20/2023

106,496

USD

2,630,044

INR**

219,050,000

SG

12/20/2023

3,512

Consolidated

Schedule

of

Investments

Absolute

Return

Multi-Manager

Fund^

(cont’d)

22

See

Notes

to

Consolidated

Financial

Statements

Currency

Purchased

Currency

Sold

Counterparty

Settlement

Date

Net

Unrealized

Appreciation/

(Depreciation)

USD

5,053,757

JPY

741,570,000

SG

12/20/2023

$

120,143

USD

1,116,033

KRW**

1,482,270,000

SG

12/20/2023

17,429

USD

1,093,599

MXN

19,430,000

SG

12/20/2023

24,557

USD

2,599,537

NOK

27,990,000

SG

12/20/2023

90,249

USD

2,995,109

NZD

5,080,000

SG

12/20/2023

35,008

USD

877,528

PHP**

49,750,000

SG

12/20/2023

1,442

USD

2,991,215

SEK

33,030,000

SG

12/20/2023

24,912

USD

3,766,888

SGD

5,120,000

SG

12/20/2023

19,181

USD

1,140,518

THB

40,440,000

SG

12/20/2023

10,390

USD

332,527

TRY

9,740,000

SG

12/20/2023

1,649

ZAR

13,060,000

USD

688,578

SG

12/20/2023

9,159

GBP

13,386

USD

16,251

JPM

12/29/2023

27

USD

10,130

AUD

15,693

JPM

12/29/2023

155

USD

364,183

CAD

492,766

JPM

12/29/2023

8,459

USD

2,375

GBP

1,938

JPM

12/29/2023

18

USD

12,359

HKD

96,566

JPM

12/29/2023

8

Total

unrealized

appreciation

$

916,931

Currenc

y

Purchased

Currency

Sold

Counterparty

Settlement

Date

Net

Unrealized

Appreciation/

(Depreciation)

GBP

45,916

USD

55,822

JPM

11/15/2023

$

(8)

USD

3,739,014

EUR

3,548,799

JPM

11/15/2023

(17,991)

AUD

30,000

JPY

2,872,281

SG

12/20/2023

(47)

AUD

5,040,000

USD

3,248,390

SG

12/20/2023

(45,954)

BRL**

6,090,000

USD

1,223,955

SG

12/20/2023

(22,871)

CAD

4,180,000

USD

3,095,973

SG

12/20/2023

(79,146)

CHF

1,410,000

USD

1,581,068

SG

12/20/2023

(22,243)

CZK

28,160,000

USD

1,221,503

SG

12/20/2023

(9,985)

EUR

729,722

PLN

3,400,000

SG

12/20/2023

(32,029)

EUR

1,120,000

TRY

35,330,295

SG

12/20/2023

(12,399)

EUR

1,830,000

USD

1,947,893

SG

12/20/2023

(7,092)

GBP

490,000

USD

601,966

SG

12/20/2023

(6,160)

HUF

55,660,000

USD

153,617

SG

12/20/2023

(738)

ILS

1,980,000

USD

504,704

SG

12/20/2023

(13,470)

INR**

187,540,000

USD

2,251,184

SG

12/20/2023

(2,476)

Consolidated

Schedule

of

Investments

Absolute

Return

Multi-Manager

Fund^

(cont’d)

23

See

Notes

to

Consolidated

Financial

Statements

Currency

Purchased

Currency

Sold

Counterparty

Settlement

Date

Net

Unrealized

Appreciation/

(Depreciation)

JPY

567,193,685

AUD

6,060,000

SG

12/20/2023

$

(77,049)

JPY

261,030,000

USD

1,767,059

SG

12/20/2023

(30,442)

KRW**

1,118,420,000

USD

836,315

SG

12/20/2023

(7,383)

MXN

21,530,000

USD

1,236,589

SG

12/20/2023

(52,008)

NOK

9,090,000

USD

851,140

SG

12/20/2023

(36,226)

NZD

3,060,000

USD

1,824,477

SG

12/20/2023

(41,422)

PHP**

16,880,000

USD

297,478

SG

12/20/2023

(225)

PLN

3,570,000

EUR

800,444

SG

12/20/2023

(2,678)

PLN

1,570,000

USD

374,115

SG

12/20/2023

(1,964)

SEK

22,370,000

USD

2,053,451

SG

12/20/2023

(44,485)

SGD

4,130,000

USD

3,033,095

SG

12/20/2023

(10,040)

THB

420,000

USD

11,854

SG

12/20/2023

(117)

TRY

11,220,731

EUR

360,000

SG

12/20/2023

(616)

TRY

330,000

USD

11,280

SG

12/20/2023

(70)

USD

2,014,453

AUD

3,180,000

SG

12/20/2023

(6,131)

USD

846,158

BRL**

4,330,000

SG

12/20/2023

(7,817)

USD

43,261

CAD

60,000

SG

12/20/2023

(43)

USD

385,439

CHF

350,000

SG

12/20/2023

(1,505)

USD

69,435

CLP**

64,610,000

SG

12/20/2023

(2,541)

USD

575,604

CZK

13,480,000

SG

12/20/2023

(4,340)

USD

1,765,184

EUR

1,670,000

SG

12/20/2023

(5,930)

USD

861,338

GBP

710,000

SG

12/20/2023

(1,974)

USD

598,936

HUF

221,660,000

SG

12/20/2023

(9,891)

USD

12,366

ILS

50,000

SG

12/20/2023

(39)

USD

2,967,026

INR**

247,870,000

SG

12/20/2023

(5,071)

USD

364,190

KRW**

492,260,000

SG

12/20/2023

(656)

USD

259,245

MXN

4,770,000

SG

12/20/2023

(3,201)

USD

36,620

NOK

410,000

SG

12/20/2023

(136)

USD

843,499

NZD

1,450,000

SG

12/20/2023

(1,411)

USD

500,881

PHP**

28,520,000

SG

12/20/2023

(1,349)

USD

1,072,905

PLN

4,650,000

SG

12/20/2023

(29,329)

USD

544,417

SEK

6,070,000

SG

12/20/2023

(709)

USD

1,116,798

SGD

1,530,000

SG

12/20/2023

(3,123)

USD

160,193

THB

5,850,000

SG

12/20/2023

(3,291)

USD

250,210

TRY

7,430,000

SG

12/20/2023

(2,194)

Consolidated

Schedule

of

Investments

Absolute

Return

Multi-Manager

Fund^

(cont’d)

24

See

Notes

to

Consolidated

Financial

Statements

Currency

Purchased

Currency

Sold

Counterparty

Settlement

Date

Net

Unrealized

Appreciation/

(Depreciation)

USD

1,176,743

ZAR

22,540,000

SG

12/20/2023

$

(27,467)

AUD

365,283

USD

233,555

JPM

12/29/2023

(1,380)

CAD

109,075

USD

79,801

JPM

12/29/2023

(1,060)

GBP

1,938

USD

2,389

JPM

12/29/2023

(32)

HKD

96,566

USD

12,357

JPM

12/29/2023

(7)

USD

22,664

AUD

35,736

JPM

12/29/2023

(49)

USD

16,855

CAD

23,391

JPM

12/29/2023

(31)

USD

121,522

GBP

99,962

JPM

12/29/2023

(37)

Total

unrealized

depreciation

$

(698,078)

Net

unrealized

appreciation

$218,853

**        Non-deliverable

forward.

For

the

year

ended

October

31,

2023,

the

average

notional

value

for

the

months

where

the

Fund

had

forward

contracts

outstanding

was

$3,196,804.

Equity

swap

contracts

("equity

swaps")

At

October

31,

2023,

the

Fund

had

outstanding

equity

swaps

as

follows:

Over

the

counter

equity

swaps

—

Long

(a)

Counterparty

Reference

Entity

Notional

Amount

Maturity

Date

Variable-

Rate

(b)

Spread

Reference

Rate

Frequency

of

Fund

Receipt/

Payment

Value

and

Unrealized

Appreciation/

(Depreciation)

MS

adidas

AG

EUR

537,548

2/15/2024

4.47%

0.60%

1M

EURIBOR

T/1M

$

100,630

JPM

Alliance

Aviation

Services

Ltd.

AUD

34,615

7/15/2024

4.72%

0.65%

1D

RBACR

T/1M

1,599

MS

Amundi

SA

EUR

1,397,553

2/15/2024

4.47%

0.60%

1M

EURIBOR

T/1M

(421,709)

MS

Anima

Holding

SpA

EUR

353,888

2/15/2024

4.47%

0.60%

1M

EURIBOR

T/1M

(17,158)

JPM

Applus

Services

SA

EUR

194,115

7/5/2024

4.53%

0.65%

1D

ESTR

T/1M

1,993

JPM

Ascential

plc

GBP

6,545

11/4/2024

5.59%

0.40%

1D

SONIA

T/1M

(8)

MS

Aspen

Pharmacare

Holdings

Ltd.

USD

60,786

12/15/2023

6.23%

0.90%

1D

FEDEF

T/1M

(8,338)

MS

Brenntag

SE

EUR

641,318

2/15/2024

4.47%

0.60%

1M

EURIBOR

T/1M

(2,483)

MS

Bureau

Veritas

SA

EUR

601,204

2/15/2024

4.47%

0.60%

1M

EURIBOR

T/1M

(132,254)

JPM

Chr

Hansen

Holding

A/S

DKK

1,251,222

1/2/2024

4.30%

0.40%

1M

CIBOR

T/1M

(8,445)

MS

Croda

International

plc

GBP

41,109

12/3/2024

5.83%

0.64%

1D

SONIA

T/1M

(21,897)

MS

Danone

SA

EUR

1,116,880

2/15/2024

4.47%

0.60%

1M

EURIBOR

T/1M

116,421

JPM

Dechra

Pharmaceuticals

plc

GBP

808,553

6/6/2024

5.59%

0.40%

1D

SONIA

T/1M

39,312

MS

Elis

SA

EUR

413,931

2/15/2024

4.47%

0.60%

1M

EURIBOR

T/1M

(31,641)

JPM

Entain

plc

GBP

106,475

2/8/2024

5.59%

0.40%

1D

SONIA

T/1M

(62,310)

JPM

ESI

Group

EUR

32,035

9/4/2024

4.28%

0.40%

1D

ESTR

T/1M

(373)

JPM

Estia

Health

Ltd.

AUD

158,600

8/12/2024

4.72%

0.65%

1D

RBACR

T/1M

(1,565)

MS

Eurofins

Scientific

SE

EUR

215,905

2/15/2024

4.47%

0.60%

1M

EURIBOR

T/1M

(94,376)

Consolidated

Schedule

of

Investments

Absolute

Return

Multi-Manager

Fund^

(cont’d)

25

See

Notes

to

Consolidated

Financial

Statements

Counterparty

Reference

Entity

Notional

Amount

Maturity

Date

Variable-

Rate

(b)

Spread

Reference

Rate

Frequency

of

Fund

Receipt/

Payment

Value

and

Unrealized

JPM

Gresham

House

plc

GBP

30,629

7/24/2024

5.59%

0.40%

1D

SONIA

T/1M

$

748

MS

Heidelberg

Materials

AG

EUR

548,182

2/15/2024

4.47%

0.60%

1M

EURIBOR

T/1M

51,256

MS

Hermes

International

SCA

EUR

223,469

2/15/2024

4.47%

0.60%

1M

EURIBOR

T/1M

7,113

MS

Holcim

AG

CHF

420,207

2/15/2024

2.28%

0.58%

1D

SARON

T/1M

2,657

MS

Hypera

SA

USD

82,446

7/15/2024

5.98%

0.65%

1D

FEDEF

T/1M

(45,542)

JPM

IMAX

China

Holding,

Inc.

HKD

654,250

7/17/2024

4.48%

0.00%

1D

HONIA

T/1M

(26,381)

MS

ITV

plc

GBP

105,367

12/3/2024

5.83%

0.64%

1D

SONIA

T/1M

(41,580)

JPM

JSR

Corp.

JPY

72,342,000

7/16/2024

0.33%

0.35%

1D

MUTSC

T/1M

(6,251)

MS

Kering

SA

EUR

560,622

2/15/2024

4.47%

0.60%

1M

EURIBOR

T/1M

(276,328)

JPM

Link

Administration

Holdings

Ltd.

AUD

10,441

12/29/2023

4.72%

0.65%

1D

RBACR

T/1M

(12,311)

MS

LVMH

Moet

Hennessy

Louis

Vuitton

SE

EUR

183,464

2/15/2024

4.47%

0.60%

1M

EURIBOR

T/1M

(39,095)

MS

NAVER

Corp.

USD

65,355

8/15/2024

6.83%

1.50%

1D

FEDEF

T/1M

(12,779)

JPM

Network

International

Holdings

plc

GBP

637,330

5/7/2024

5.59%

0.40%

1D

SONIA

T/1M

9,892

JPM

Orange

Belgium

SA

EUR

13,567

12/11/2023

4.28%

-

5.38%

0.40%

-

0.50%

1D

ESTR

T/1M

(3,931)

JPM

Origin

Energy

Ltd.

AUD

955,162

3/28/2024

4.72%

0.65%

1D

RBACR

T/1M

56,912

JPM

R&Q

Insurance

Holdings

Ltd.

GBP

689

4/11/2024

5.59%

0.40%

1D

SONIA

T/1M

(3,705)

MS

Ryanair

Holdings

plc

EUR

205,936

2/15/2024

4.47%

0.60%

1M

EURIBOR

T/1M

(12,820)

MS

SAP

SE

EUR

239,665

2/15/2024

4.47%

0.60%

1M

EURIBOR

T/1M

34,707

JPM

Siltronic

AG

EUR

74,104

2/7/2024

4.53%

0.65%

1D

ESTR

T/1M

3,830

MS

Smith

&

Nephew

plc

GBP

450,428

12/3/2024

5.83%

0.64%

1D

SONIA

T/1M

(160,044)

JPM

Spire

Healthcare

Group

plc

GBP

19,742

6/20/2024

5.59%

0.40%

1D

SONIA

T/1M

(1,130)

MS

Stroeer

SE

&

Co.

KGaA

EUR

137,633

2/15/2024

4.47%

0.60%

1M

EURIBOR

T/1M

(29,107)

JPM

Telecom

Italia

SpA

EUR

13,286

11/24/2023

4.53%

0.65%

1D

ESTR

T/1M

1,431

JPM

Vitesco

Technologies

Group

AG

EUR

69,536

10/28/2024

4.53%

0.65%

1D

ESTR

T/1M

429

Total

long

positions

of

equity

swaps

$(1,044,631)

Over

the

counter

equity

swaps

—

Short

(c)

Counterparty

Reference

Entity

Notional

Amount

Maturity

Date

Variable-

Rate

(b)

Spread

Reference

Rate

Frequency

of

Fund

Receipt/

Payment

Value

and

Unrealized

Appreciation/

(Depreciation)

MS

Air

Liquide

SA

EUR

(558,928)

2/15/2024

3.53%

(0.35)%

1D

ESTR

1M/T

$

(65,852)

MS

Allianz

SE

(Registered)

EUR

(432,522)

2/15/2024

3.53%

(0.35)%

1D

ESTR

1M/T

(3,605)

MS

AXA

SA

EUR

(280,584)

2/15/2024

3.53%

(0.35)%

1D

ESTR

1M/T

1,800

MS

BASF

SE

EUR

(184,371)

2/15/2024

3.53%

(0.35)%

1D

ESTR

1M/T

33,407

Consolidated

Schedule

of

Investments

Absolute

Return

Multi-Manager

Fund^

(cont’d)

26

See

Notes

to

Consolidated

Financial

Statements

Purchased

option

contracts

(“options

purchased”)

At

October

31,

2023,

the

Fund

did

not

have

any

outstanding

options

purchased.

Counterparty

Reference

Entity

Notional

Amount

Maturity

Date

Variable-

Rate

(b)

Spread

Reference

Rate

Frequency

of

Fund

Receipt/

Payment

Value

and

Unrealized

MS

Bayerische

Motoren

Werke

AG

EUR

(125,223)

2/15/2024

3.53%

(0.35)%

1D

ESTR

1M/T

$

15,253

MS

Deutsche

Post

AG

EUR

(259,562)

2/15/2024

3.53%

(0.35)%

1D

ESTR

1M/T

31,447

MS

Enel

SpA

EUR

(134,844)

2/15/2024

3.48%

(0.40)%

1D

ESTR

1M/T

(15,238)

MS

Engie

SA

EUR

(272,623)

2/15/2024

3.53%

(0.35)%

1D

ESTR

1M/T

(34,845)

JPM

Grifols

SA

USD

(27,250)

4/15/2024

4.92%

(0.40)%

1D

OBFR

1M/T

(1,982)

MS

H

&

M

Hennes

&

Mauritz

AB

SEK

(1,921,043)

10/21/2024

3.60%

(0.40)%

1W

STIBOR

1M/T

18,684

MS

Hannover

Rueck

SE

EUR

(293,911)

2/15/2024

3.53%

(0.35)%

1D

ESTR

1M/T

(45,382)

MS

Marks

&

Spencer

Group

plc

GBP

(266,085)

12/3/2024

4.89%

(0.30)%

1D

SONIA

1M/T

(83,723)

MS

Merck

&

Co.,

Inc.

USD

(199,033)

12/15/2023

4.98%

(0.35)%

1D

FEDEF

1M/T

12,026

MS

Next

plc

GBP

(199,361)

12/3/2024

4.89%

(0.30)%

1D

SONIA

1M/T

(9,563)

JPM

Novozymes

A/S

DKK

(1,263,551)

1/2/2024

3.15%

-

3.30%

(0.75)%

-

(0.60)%

1M

CIBOR

1M/T

21,066

MS

Schneider

Electric

SE

EUR

(362,740)

2/15/2024

3.53%

(0.35)%

1D

ESTR

1M/T

16,192

JPM

Smurfit

Kappa

Group

plc

USD

(121,159)

9/16/2024

4.57%

(0.75)%

1D

OBFR

1M/T

4,820

MS

Swisscom

AG

(Registered)

CHF

(263,296)

2/15/2024

1.35%

(0.35)%

1D

SARON

1M/T

14,251

MS

Telefonica

SA

EUR

(109,136)

2/15/2024

3.48%

(0.40)%

1D

ESTR

1M/T

156

MS

Tencent

Holdings

Ltd.

USD

(221,744)

7/23/2025

4.93%

(0.40)%

1D

FEDEF

1M/T

23,259

MS

Vinci

SA

EUR

(364,844)

2/15/2024

3.53%

(0.35)%

1D

ESTR

1M/T

10,809

Total

short

positions

of

equity

swaps

$(57,020)

Total

long

and

short

positions

of

equity

swaps

$(1,101,651)

Total

financing

costs

and

other

receivables/(payables)

of

equity

swaps

$9,511

Total

long

and

short

positions

including

financing

costs

and

other

receivables/(payables)

of

equity

swaps

$(1,092,140)

(a)          The

Fund

pays

a

specified

rate

based

on

a

reference

rate

plus

or

minus

a

spread,

and

receives

the

total

tttttttttttt

return

on

the

reference

entity.

(b)          Effective

rate

at

October

31,

2023.

(c)          The

Fund

receives

a

specified

rate

based

on

a

reference

rate

plus

or

minus

a

spread,

and

pays

the

total

t

return

on

the

reference

entity.

For

the

year

ended

October

31,

2023,

the

average

notional

value

for

the

months

where

the

Fund

had

equity

swaps

outstanding

was

$14,120,293

for

long

positions

and

$(5,719,156)

for

short

positions.

At

October

31,

2023,

the

Fund

had

cash

collateral

of

$2,590,000,

$3,860,000

and

$1,063,292

deposited

in

a

segregated

account

for

JPMorgan

Chase

Bank,

NA,

Morgan

Stanley

Capital

Services

LLC

and

Societe

Generale

,

respectively,

to

cover

collateral

requirements

on

over

the

counter

derivatives.

Consolidated

Schedule

of

Investments

Absolute

Return

Multi-Manager

Fund^

(cont’d)

27

See

Notes

to

Consolidated

Financial

Statements

Written

option

contracts

("options

written")

At

October

31,

2023,

the

Fund

had

outstanding

options

written

as

follows:

Description

Number

of

Contracts

Notional

Amount

Exercise

Price

Expiration

Date

Value

Calls

Food

Products

Sovos

Brands,

Inc.

13

$

(28,223)

$

25.00

11/17/2023

$

—

(a)(b)

Total

options

written

(premium

received

$182)

$—

(a)  Value

determined

using

significant

unobservable

inputs.

(b)  Security

fair

valued

as

of

October

31,

2023,

in

accordance

with

procedures

approved

by

the

valuation

designee.

For

the

year

ended

October

31,

2023,

the

average

market

value

for

the

months

where

the

Fund

had

options

purchased

and

written

was

$18,383

for

options

purchased

and

$(662)

for

options

written.

At

October

31,

2023,

the

Fund

had

securities

pledged

in

the

amount

of

$28,223

to

JPMorgan

Chase

Bank,

NA

to

cover

collateral

requirements

for

options.

Abbreviations

CIBOR

Copenhagen

Interbank

Offered

Rate

ESTR

Euro

Short-Term

Rate

EURIBOR      

Euro

Interbank

Offered

Rate

FEDEF          

Federal

Funds

Floating

Rate

FTSE

Financial

Times

Stock

Exchange

HONIA

Hong

Kong

Overnight

Index

Average

HSCEI

Hang

Seng

China

Enterprises

Index

JPM              

JPMorgan

Chase

Bank,

NA

JSE

Johannesburg

Stock

Exchange

MS                

Morgan

Stanley

Capital

Services

LLC

MSCI

Morgan

Stanley

Capital

International

MUTSC

Bank

of

Japan

Unsecured

Overnight

Call

Rate

OBFR

Overnight

Bank

Funding

Rate

OMX

Stockholm

Stock

Exchange

RBACR

Reserve

Bank

of

Australia

Cash

Rate

SARON          

Swiss

Average

Overnight

Rate

SG                  

Societe

Generale

SGX

Singapore

Exchange

SOFR

Secured

Overnight

Financing

Rate

SPI

Australian

Benchmark

Index

SONIA          

Sterling

Overnight

Index

Average

Rate

STIBOR        

Stockholm

Interbank

Offered

Rate

TSX

Toronto

Stock

Exchange

T                  

Termination

Date

1D                

One

Day

1M                

One

Month

Consolidated

Schedule

of

Investments

Absolute

Return

Multi-Manager

Fund^

(cont’d)

28

See

Notes

to

Consolidated

Financial

Statements

1W                

One

Week

Currency

Abbreviations

AUD

Australian

Dollar

BRL

Brazilian

Real

CAD

Canadian

Dollar

CHF

Swiss

Franc

CLP

Chilean

Peso

CZK

Czech

Republic

Koruna

DKK

Danish

Krone

EUR

Euro

GBP

Pound

Sterling

HKD

Hong

Kong

Dollar

HUF

Hungarian

Forint

ILS

Israeli

New

Shekel

INR

Indian

Rupee

JPY

Japanese

Yen

KRW

Korean

Won

MXN

Mexican

Peso

NOK

Norwegian

Krone

NZD

New

Zealand

Dollar

PHP

Philippine

Peso

PLN

Polish

Zloty

SEK

Swedish

Krona

SGD

Singapore

Dollar

THB

Thailand

Baht

TRY

Turkish

Lira

USD

United

States

Dollar

ZAR

South

African

Rand

The

following

is

a

summary,

categorized

by

Level

(See

Note

A

of

the

Notes

to

Consolidated

Financial

Statements),

of

inputs

used

to

value

the

Fund's

investments

as

of

October

31,

2023:

Asset

Valuation

Inputs

Level

1

Level

2

Level

3

*

Total

Investments:

Common

Stocks

Broadline

Retail

$

3,311,838

$

232,719

$

—

$

3,544,557

Capital

Markets

426,112

—

915

427,027

Consumer

Staples

Distribution

&

Retail

1,086,777

—

—

1,086,777

Diversified

Telecommunication

Services

49,827

—

298,660

348,487

Food

Products

894,636

1,368,366

—

2,263,002

Health

Care

Providers

&

Services

812,248

84,578

—

896,826

Insurance

345,058

629,567

—

974,625

Interactive

Media

&

Services

2,405,285

25,352

—

2,430,637

Life

Sciences

Tools

&

Services

43,610

629,166

—

672,776

Media

861,486

330,328

—

1,191,814

Metals

&

Mining

183,742

610,642

—

794,384

Consolidated

Schedule

of

Investments

Absolute

Return

Multi-Manager

Fund^

(cont’d)

29

See

Notes

to

Consolidated

Financial

Statements

Asset

Valuation

Inputs

(cont’d)

Level

1

Level

2

Level

3

*

Total

Oil,

Gas

&

Consumable

Fuels

$

3,257,395

$

42,961

$

—

$

3,300,356

Passenger

Airlines

65,917

—

144

66,061

Pharmaceuticals

210,118

1,046,052

—

1,256,170

Professional

Services

—

292,054

—

292,054

Semiconductors

&

Semiconductor

Equipment

620,069

70,932

—

691,001

Software

1,898,004

1,375,393

1,156,250

4,429,647

Specialty

Retail

239,226

5,242

14,050

258,518

Technology

Hardware,

Storage

&

Peripherals

1,053,682

446,420

—

1,500,102

Trading

Companies

&

Distributors

256,897

655,772

—

912,669

Other

Common

Stocks

(a)

10,915,711

—

—

10,915,711

Total

Common

Stocks

28,937,638

7,845,544

1,470,019

38,253,201

Preferred

Stocks

(a)

57,536

—

—

57,536

Corporate

Bonds

(a)

—

—

—

—

Insurance

Linked

Securities

(a)

—

8,058,845

—

8,058,845

Loan

Assignments

(a)

—

—

5,632

5,632

Rights

Biotechnology

—

—

42,017

42,017

Financial

Services

—

—

11,500

11,500

Health

Care

Equipment

&

Supplies

—

—

5,775

5,775

IT

Services

—

—

12,025

12,025

Metals

&

Mining

19,840

—

3

19,843

Total

Rights

19,840

—

71,320

91,160

Warrants

(a)

229

—

—

229

Short-Term

Investments

—

66,330,746

—

66,330,746

Total

Long

Positions

$29,015,243

$82,235,135

$1,546,971

$112,797,349

(a)

The

Consolidated

Schedule

of

Investments

provides

information

on

the

industry

or

sector

categorization

as

well

as

a

Positions

by

Country

summary.

*

The

following

is

a

reconciliation

between

the

beginning

and

ending

balances

of

investments

in

which

significant

unobservable

inputs

(Level

3)

were

used

in

determining

value:

Common

Stocks

(a)(b)

Corporate

Bonds

(a)(c)

Loan

Assignments

(a)

Rights

(a)(b)

Warrants

(a)

Total

Assets:

Investments

in

Securities:

Beginning

Balance

as

of

November

1,

2022

$248,739

$–

$5,738

$149,146

$8

$403,631

Transfers

into

Level

3

424,297

–

–

–

–

424,297

Transfers

out

of

Level

3

–

–

–

–

–

–

Accrued

discounts/(premiums)

–

–

–

–

–

–

Realized

gain/(loss)

216,464

–

(199)

170,400

–

386,665

Change

in

unrealized

appreciation/

(depreciation)

84,891

–

(3,461)

(120,049)

6

(38,613)

Purchases

845,873

–

3,991

42,223

–

892,087

Sales

(350,245)

–

(437)

(170,400)

(14)

(521,096)

Balance

as

of

October

31,

2023

$1,470,019

$–

$5,632

$71,320

$–

$1,546,971

Net

change

in

unrealized

appreciation/

(depreciation)

on

investments

still

held

as

of

October

31,

2023

$(5,836)

$–

$(3,461)

$(114,110)

$–

$(123,407)

Consolidated

Schedule

of

Investments

Absolute

Return

Multi-Manager

Fund^

(cont’d)

30

See

Notes

to

Consolidated

Financial

Statements

(a)

As

of

the

year

ended

October

31,

2023,

these

securities

were

fair

valued

in

accordance

with

procedures

approved

by

the

valuation

designee.

These

investments

did

not

have

a

material

impact

on

the

Fund’s

net

assets;

therefore,

disclosure

of

significant

unobservable

inputs

used

in

formulating

valuations

is

not

presented.

(b)

These

securities

were

valued

based

on

a

single

quotation

obtained

from

a

dealer.

The

Fund

does

not

have

access

to

unobservable

inputs

and

therefore

cannot

disclose

such

inputs

used

in

formulating

such

quotation.

(c)

The

reconciliation

between

beginning

and

ending

balances

of

investments

in

which

significant

unobservable

inputs

(Level

3)

were

used

is

not

presented

as

all

values

are

zero.

The

following

is

a

summary,

categorized

by

Level

(see

Note

A

of

the

Notes

to

Consolidated

Financial

Statements)

,

of

inputs

used

to

value

the

Fund's

short

investments

as

of

October

31,

2023

:

Liability

Valuation

Inputs

Level

1

Level

2

Level

3

Total

Investments:

Common

Stocks

Sold

Short

(a)

$

(4,718,916)

$

—

$

—

$

(4,718,916)

Total

Short

Positions

$(4,718,916)

$—

$—

$(4,718,916)

(a)

The

Consolidated

Schedule

of

Investments

provides

information

on

the

industry

or

sector

categorization

as

well

as

a

Positions

by

Country

summary.

The

following

is

a

summary,

categorized

by

level

(see

Note

A

of

the

Notes

to

Consolidated

Financial

Statements),

of

inputs

used

to

value

the

Fund's

derivatives

as

of

October

31,

2023:

Other

Financial

Instruments

Level

1

Level

2

Level

3

*

Total

Futures

(a)

Assets

$

1,194,380

$

—

$

—

$

1,194,380

Liabilities

(100,051)

—

—

(100,051)

Forward

contracts

(a)

Assets

—

916,931

—

916,931

Liabilities

—

(698,078)

—

(698,078)

Swaps

Assets

—

645,686

—

645,686

Liabilities

—

(1,737,826)

—

(1,737,826)

Options

Written

Liabilities

—

—

—

—

Total

$

1,094,329

$

(873,287)

$

—

$

221,042

(a)

Futures

and

forward

contracts

are

reported

at

the

cumulative

unrealized

appreciation/(depreciation)

of

the

instruments.

Consolidated

Schedule

of

Investments

Absolute

Return

Multi-Manager

Fund^

(cont’d)

31

See

Notes

to

Consolidated

Financial

Statements

^      

A

balance

indicated

with

a

“—”,

reflects

either

a

zero

balance

or

an

amount

that

rounds

to

less

than

1.

*

The

following

is

a

reconciliation

between

the

beginning

and

ending

balances

of

investments

in

which

significant

unobservable

inputs

(Level

3)

were

used

in

determining

value:

Options

Written

(a)

Other

Financial

Instruments:

Beginning

Balance

as

of

November

1,

2022

$–

Transfers

into

Level

3

–

Transfers

out

of

Level

3

–

Accrued

discounts/(premiums)

–

Realized

gain/(loss)

–

Change

in

unrealized

appreciation/(depreciation)

182

Purchases

(182)

Sales

–

Balance

as

of

October

31,

2023

$–

Net

change

in

unrealized

appreciation/(depreciation)

on

investments

still

held

as

of

October

31,

2023

$182

(a)

As

of

the

year

ended

October

31,

2023,

these

securities

were

fair

valued

in

accordance

with

procedures

approved

by

the

valuation

designee.

These

investments

did

not

have

a

material

impact

on

the

Fund’s

net

assets;

therefore,

disclosure

of

significant

unobservable

inputs

used

in

formulating

valuations

is

not

presented.

32

Consolidated

Statement

of

Assets

and

Liabilities

Neuberger

Berman

Alternative

Funds

See

Notes

to

Consolidated

Financial

Statements

ABSOLUTE

RETURN

MULTI-MANAGER

FUND

October

31,

2023

Assets

Investments

in

securities,

at

value*

(Note

A)—see

Consolidated

Schedule

of

Investments:

Unaffiliated

issuers

(a)

$112,797,349

Cash

1,835,315

Due

from

brokers

71,192

Foreign

currency

(b)

71,323

Cash

collateral

segregated

for

short

sales

(Note

A)

4,569,836

Cash

collateral

segregated

for

over

the

counter

derivatives

(Note

A)

7,513,292

Dividends

and

interest

receivable

512,753

Receivable

for

securities

sold

245,832

Receivable

for

Fund

shares

sold

801

Deposits

with

brokers

for

futures

contracts

(Note

A)

2,291,856

Receivable

for

variation

margin

on

futures

contracts

(Note

A)

462,858

Receivable

from

administrator—net

(Note

B)

50,106

Over

the

counter

swap

contracts,

at

value

(Note

A)

645,686

Receivable

for

forward

foreign

currency

contracts

(Note

A)

916,931

Prepaid

expenses

and

other

assets

80,484

Total

Assets

132,065,614

Liabilities

Investments

sold

short,

at

value

(Note

A)

(c)

4,718,916

Options

contracts

written,

at

value

(Note

A)

(d)

—

Over

the

counter

swap

contracts,

at

value

(Note

A)

1,737,826

Payable

to

investment

manager—net

(Note

B)

181,641

Payable

for

securities

purchased

631,944

Payable

for

Fund

shares

redeemed

135,510

Payable

for

forward

foreign

currency

contracts

(Note

A)

698,078

Payable

to

trustees

4,371

Payable

for

audit

fees

125,796

Payable

for

custodian

and

accounting

fees

114,844

Other

accrued

expenses

and

payables

56,987

Total

Liabilities

8,405,913

Net

Assets

$123,659,701

Net

Assets

consist

of:

Paid-in

capital

$235,671,901

Total

distributable

earnings/(losses)

(112,012,200)

Net

Assets

$123,659,701

Neuberger

Berman

Alternative

Funds

Consolidated

Statement

of

Assets

and

Liabilities

(cont’d)

33

See

Notes

to

Consolidated

Financial

Statements

ABSOLUTE

RETURN

MULTI-MANAGER

FUND

October

31,

2023

Net

Assets

Institutional

Class

$111,122,476

Class

A

7,632,993

Class

C

2,381,213

Class

R6

138,446

Class

E

2,384,573

Shares

Outstanding

($.001

par

value;

unlimited

shares

authorized)

Institutional

Class

9,517,376

Class

A

667,905

Class

C

222,274

Class

R6

11,849

Class

E

201,762

Net

Asset

Value,

offering

and

redemption

price

per

share

Institutional

Class

$11.68

Class

R6

$11.68

Class

E

$11.82

Net

Asset

Value

and

redemption

price

per

share

Class

A

$11.43

Offering

Price

per

share

Class

A‡

$12.13

Net

Asset

Value

and

offering

price

per

share

Class

C

^

$10.71

*Cost

of

Investments:

(a)

Unaffiliated

issuers

$114,125,459

(b)

Total

cost

of

foreign

currency

$71,847

(c)

Proceeds

from

investments

sold

short

$4,653,886

(d)

Premium

received

from

option

contracts

written

$182

‡

On

single

retail

sales

of

less

than

$50,000.

On

sales

of

$50,000

or

more

or

in

certain

other

circumstances

described

in

the

Fund’s

prospectus,

offering

price

is

reduced.

^

Redemption

price

per

share

is

equal

to

net

asset

value

less

any

applicable

contingent

deferred

sales

charge.

34

Consolidated

Statement

of

Operations

Neuberger

Berman

Alternative

Funds

See

Notes

to

Consolidated

Financial

Statements

ABSOLUTE

RETURN

MULTI-MANAGER

FUND

For

the

Fiscal

Year

Ended

October

31,

2023

Investment

Income:

Income

(Note

A):

Dividend

income—unaffiliated

issuers

$3,985,127

Interest

and

other

income—unaffiliated

issuers

990,503

Foreign

taxes

withheld

(48,785)

Total

income

$4,926,845

Expenses:

Investment

management

fees

(Note

B)

2,309,741

Administration

fees

(Note

B):

  Institutional

Class

183,521

  Class

A

21,013

  Class

C

6,934

  Class

R6

149

Distribution

fees

(Note

B):

  Class

A

20,205

  Class

C

26,671

Shareholder

servicing

agent

fees:

  Institutional

Class

2,425

  Class

A

99

  Class

C

727

  Class

R6

157

  Class

E

111

Audit

fees

116,858

Custodian

and

accounting

fees

299,133

Insurance

2,377

Legal

fees

165,489

Registration

and

filing

fees

118,218

Shareholder

reports

49,496

Trustees'

fees

and

expenses

43,994

Dividend

and

interest

expense

on

securities

sold

short

(Note

A)

(7,607)

Miscellaneous

and

other

fees

25,452

Total

expenses

3,385,163

Expenses

reimbursed

by

Management

(Note

B)

(644,879)

Investment

management

fees

waived

(Note

B)

(42,119)

Expenses

reduced

by

custodian

fee

expense

offset

arrangement

(Note

A)

(134)

Total

net

expenses

2,698,031

Net

investment

income/(loss)

$2,228,814

Neuberger

Berman

Alternative

Funds

Consolidated

Statement

of

Operations

(cont’d)

35

See

Notes

to

Consolidated

Financial

Statements

ABSOLUTE

RETURN

MULTI-MANAGER

FUND

For

the

Fiscal

Year

Ended

October

31,

2023

Realized

and

Unrealized

Gain/(Loss)

on

Investments

(Note

A):

Net

realized

gain/(loss)

on:

Transactions

in

investment

securities

of

unaffiliated

issuers

2,330,028

Closed

short

positions

of

unaffiliated

issuers

(241,362)

Settlement

of

forward

foreign

currency

contracts

(759,225)

Settlement

of

foreign

currency

transactions

167,671

Expiration

or

closing

of

futures

contracts

(2,914,707)

Expiration

or

closing

of

option

contracts

written

4,942

Expiration

or

closing

of

swap

contracts

425,369

Change

in

net

unrealized

appreciation/(depreciation)

in

value

of:

Investment

securities

of

unaffiliated

issuers

1,298,798

Short

positions

of

unaffiliated

issuers

(1,548,006)

Forward

foreign

currency

contracts

(65,351)

Foreign

currency

translations

(210,271)

Futures

contracts

596,211

Option

contracts

written

(137)

Swap

contracts

(251,412)

Net

gain/(loss)

on

investments

(1,167,452)

Net

increase/(decrease)

in

net

assets

resulting

from

operations

$1,061,362

36

Consolidated

Statements

of

Changes

in

Net

Assets

Neuberger

Berman

Alternative

Funds

See

Notes

to

Consolidated

Financial

Statements

ABSOLUTE

RETURN

MULTI-MANAGER

FUND

Fiscal

Year

Ended

October

31,

2023

Fiscal

Year

Ended

October

31,

2022

Increase/(Decrease)

in

Net

Assets:

From

Operations

(Note

A):

Net

investment

income/(loss)

$2,228,814

$(854,748)

Net

realized

gain/(loss)

on

investments

(987,284)

8,763,539

Change

in

net

unrealized

appreciation/(depreciation)

of

investments

(180,168)

(4,405,945)

Net increase/(decrease)

in

net

assets

resulting

from

operations

1,061,362

3,502,846

Distributions

to

Shareholders

From

(Note

A):

Distributable

earnings:

Institutional

Class

(3,684,077)

(99,310)

Class

A

(201,196)

—

Class

C

(48,441)

—

Class

R6

(794)

(11,210)

Class

E

(82,978)

—

Total

distributions

to

shareholders

(4,017,486)

(110,520)

From

Fund

Share

Transactions

(Note

D):

Proceeds

from

shares

sold:

  Institutional

Class

92,015,015

82,617,337

  Class

A

1,776,608

2,552,678

  Class

C

669,908

820,377

  Class

R6

143,172

2,911,777

  Class

E

948,072

2,282,555

Proceeds

from

reinvestment

of

dividends

and

distributions:

  Institutional

Class

3,533,508

88,773

  Class

A

171,512

—

  Class

C

42,218

—

  Class

R6

—

11,137

  Class

E

82,978

—

Payments

for

shares

redeemed:

  Institutional

Class

(105,679,313)

(22,946,066)

  Class

A

(2,510,964)

(1,405,508)

  Class

C

(1,084,306)

(1,126,611)

  Class

R6

(3,931,595)

(2,690,988)

  Class

E

(860,846)

(153,393)

Net

increase/(decrease)

from

Fund

share

transactions

(14,684,033)

62,962,068

Net

Increase/(Decrease)

in

Net

Assets

(17,640,157)

66,354,394

Net

Assets:

Beginning

of

year

141,299,858

74,945,464

End

of

year

$123,659,701

$141,299,858

Notes

to

Consolidated

Financial

Statements

Absolute

Return

Multi-Manager

Fund

37

Note

A—Summary

of

Significant

Accounting

Policies: 

1

General:

Neuberger

Berman

Alternative

Funds

(the

“Trust”)

is

a

Delaware

statutory

trust

organized

pursuant

to

an

Amended

and

Restated

Trust

Instrument

dated

March

27,

2014.

The

Trust

is

registered

as

an

open-end

management

investment

company

under

the

Investment

Company

Act

of

1940,

as

amended

(the

“1940

Act”),

and

its

shares

are

registered

under

the

Securities

Act

of

1933,

as

amended.

Neuberger

Berman

Absolute

Return

Multi-Manager

Fund

(the

“Fund”)

is

a

separate

operating

series

of

the

Trust

and

is

diversified.

The

Fund

currently

offers

Institutional

Class

shares,

Class

A

shares,

Class

C

shares,

Class

R6

shares

and

Class

E

shares.

The

Trust’s

Board

of

Trustees

(the

“Board”)

may

establish

additional

series

or

classes

of

shares

without

the

approval

of

shareholders.

A

balance

indicated

with

a

“—”,

reflects

either

a

zero

balance

or

a

balance

that

rounds

to

less

than

1.

The

assets

of

the

Fund

belong

only

to

the

Fund,

and

the

liabilities

of

the

Fund

are

borne

solely

by

the

Fund

and

no

other

series

of

the

Trust.

The

Fund

is

an

investment

company

and

accordingly

follows

the

investment

company

accounting

and

reporting

guidance

of

the

Financial

Accounting

Standards

Board

(“FASB”)

Accounting

Standards

Codification

(“ASC”)

Topic

946

“Financial

Services—Investment

Companies.”

The

preparation

of

financial

statements

in

accordance

with

U.S.

generally

accepted

accounting

principles

(“GAAP”)

requires

Neuberger

Berman

Investment

Advisers

LLC

(“Management”

or

“NBIA”)

to

make

estimates

and

assumptions

at

the

date

of

the

financial

statements.

Actual

results

could

differ

from

those

estimates.

The

Fund

invests

in

commodity-related

instruments

through

Neuberger

Berman

Cayman

ARMM

Fund

I

Ltd.

(the

“Subsidiary”),

which

is

organized

under

the

laws

of

the

Cayman

Islands.

The

Fund

is

and

expects

to

remain

the

sole

shareholder

of

the

Subsidiary.

The

Subsidiary

is

governed

by

its

own

Board

of

Directors.

As

of

October

31,

2023,

the

value

of

the

Fund’s

investment

in

the

Subsidiary

was

as

follows:

2

Consolidation:

The

accompanying

financial

statements

of

the

Fund

present

the

consolidated

accounts

of

the

Fund

and

the

Subsidiary.

All

intercompany

accounts

and

transactions

have

been

eliminated

in

consolidation.

3

Portfolio

valuation:

In

accordance

with

ASC

820

“Fair

Value

Measurement”

(“ASC

820”),

all

investments

held

by

the

Fund

are

carried

at

the

value

that

Management

believes

the

Fund

would

receive

upon

selling

an

investment

in

an

orderly

transaction

to

an

independent

buyer

in

the

principal

or

most

advantageous

market

for

the

investment

under

current

market

conditions.

Various

inputs,

including

the

volume

and

level

of

activity

for

the

asset

or

liability

in

the

market,

are

considered

in

valuing

the

Fund’s

investments,

some

of

which

are

discussed

below.

At

times,

Management

may

need

to

apply

significant

judgment

to

value

investments

in

accordance

with

ASC

820. 

ASC

820

established

a

three-tier

hierarchy

of

inputs

to

create

a

classification

of

value

measurements

for

disclosure

purposes.

The

three-tier

hierarchy

of

inputs

is

summarized

in

the

three

broad

Levels

listed

below.

Level

1

–

unadjusted

quoted

prices

in

active

markets

for

identical

investments

Level

2

–

other

observable

inputs

(including

quoted

prices

for

similar

investments,

interest

rates,

prepayment

speeds,

credit

risk,

amortized

cost,

etc.)

Level

3

–

unobservable

inputs

(including

the

Fund’s

own

assumptions

in

determining

the

fair

value

of

investments)

Investment

in

Subsidiary

Percentage

of

Net

Assets

$

24,305,403

19.7%

38

The

inputs

or

methodology

used

for

valuing

an

investment

are

not

necessarily

an

indication

of

the

risk

associated

with

investing

in

those

securities.

The

value

of

the

Fund’s

investments

(long

and

short

positions)

in

equity

securities,

preferred

stocks,

convertible

preferred

stocks,

rights,

warrants

and

exchange-traded

options

written

for

which

market

quotations

are

available,

is

generally

determined

by

Management

by

obtaining

valuations

from

independent

pricing

services

based

on

the

latest

sale

price

quoted

on

a

principal

exchange

or

market

for

that

security

(Level

1

inputs).

Securities

traded

primarily

on

the

NASDAQ

Stock

Market

are

normally

valued

at

the

NASDAQ

Official

Closing

Price

(“NOCP”)

provided

by

NASDAQ

each

business

day.

The

NOCP

is

the

most

recently

reported

price

as

of

4:00:02

p.m.,

Eastern

Time,

unless

that

price

is

outside

the

range

of

the

“inside”

bid

and

asked

prices

(i.e.,

the

bid

and

asked

prices

that

dealers

quote

to

each

other

when

trading

for

their

own

accounts);

in

that

case,

NASDAQ

will

adjust

the

price

to

equal

the

inside

bid

or

asked

price,

whichever

is

closer.

Because

of

delays

in

reporting

trades,

the

NOCP

may

not

be

based

on

the

price

of

the

last

trade

to

occur

before

the

market

closes.

If

there

is

no

sale

of

a

security

on

a

particular

day,

the

independent

pricing

services

may

value

the

security

based

on

market

quotations.

The

value

of

the

Fund’s

investments

for

long

positions

in

debt

securities

is

determined

by

Management

primarily

by

obtaining

valuations

from

independent

pricing

services

based

on

bid

quotations,

or

if

quotations

are

not

available,

by

methods that

include

various

considerations

based

on

security

type

(generally

Level

2

inputs).

In

addition

to

the

consideration

of

yields

or

prices

of

securities

of

comparable

quality,

coupon,

maturity

and

type,

indications

as

to

values

from

dealers,

and

general

market

conditions,

the

following

is

a

description

of

other

Level

2

inputs

and

related

valuation

techniques

used

by

independent

pricing

services

to

value

certain

types

of

debt

securities

held

by

the

Fund:

Corporate

Bonds

.

Inputs

used

to

value

corporate

debt

securities

generally

include

relevant

credit

information,

observed

market

movements,

sector

news,

U.S.

Treasury

yield

curve

or

relevant

benchmark

curve

and

other

market

information,

which

may

include

benchmark

yield

curves,

reported

trades,

broker-dealer

quotes,

issuer

spreads,

comparable

securities,

and

reference

data,

such

as

market

research

publications,

when

available

(“Other

Market

Information”).

High

Yield

Securities.

Inputs

used

to

value

high

yield

securities

generally

include

a

number

of

observations

of

equity

and

credit

default

swap

curves

related

to

the

issuer

and

Other

Market

Information.

The

value

of

insurance

linked

securities

is

determined

by

Management

primarily

by

obtaining

valuations

from

independent

third-party

pricing

services

based

on

bid

quotations

(Level

2

or

3

inputs).

The

value

of

loan

assignments

is

determined

by

Management

primarily

by

obtaining

valuations

from

independent

pricing

services

based

on

broker

quotes

(generally

Level

2

or

Level

3

inputs

depending

on

the

number

of

quotes

available).

The

value

of

futures

contracts

is

determined

by

Management

by

obtaining

valuations

from

independent

pricing

services

at

the

settlement

price

at

the

market

close

(Level

1

inputs).

The

value

of

forward

foreign

currency

contracts

is

determined

by

Management

by

obtaining

valuations

from

independent

pricing

services

based

on

actual

traded

currency

rates

on

independent

pricing

services’

networks,

along

with

other

traded

and

quoted

currency

rates

provided

to

the

pricing

services

by

leading

market

participants

(Level

2

inputs).

The

value

of

equity

swaps

is

determined

by

Management

by

obtaining

valuations

from

independent

pricing

services

using

the

underlying

asset

and

stated

benchmark

interest

rate

(Level

2

inputs).

Management

has

developed

a

process

to

periodically

review

information

provided

by

independent

pricing

services

for

all

types

of

securities.

Investments

in

non-exchange

traded

investment

companies

are

valued

using

the

respective

fund’s

daily

calculated

net

asset

value

(“NAV”)

per

share

(Level

2

inputs),

when

available.

If

a

valuation

is

not

available

from

an

independent

pricing

service,

or

if

Management

has

reason

to

believe

that

the

valuation

received

does

not

represent

the

amount

the

Fund

might

reasonably

expect

to

receive

on

39

a

current

sale

in

an

orderly

transaction,

Management

seeks

to

obtain

quotations

from

brokers

or

dealers

(generally

considered

Level

2

or

Level

3

inputs

depending

on

the

number

of

quotes

available).

If

such

quotations

are

not

available,

the

security

is

valued

using

methods

Management

has

approved

in

the

good-

faith

belief

that

the

resulting

valuation

will

reflect

the

fair

value

of

the

security.

Pursuant

to

Rule

2a-5

under

the

1940

Act,

the

Board

designated

Management

as

the

Fund’s

valuation

designee.

As

the

Fund’s

valuation

designee,

Management

is

responsible

for

determining

fair

value

in

good

faith

for

all

Fund

investments.

Inputs

and

assumptions

considered

in

determining

fair

value

of

a

security

based

on

Level

2

or

Level

3

inputs

may

include,

but

are

not

limited

to,

the

type

of

security;

the

initial

cost

of

the

security;

the

existence

of

any

contractual

restrictions

on

the

security’s

disposition;

the

price

and

extent

of

public

trading

in

similar

securities

of

the

issuer

or

of

comparable

companies;

quotations

or

evaluated

prices

from

broker-dealers

or

pricing

services;

information

obtained

from

the

issuer

and

analysts;

an

analysis

of

the

company’s

or

issuer’s

financial

statements;

an

evaluation

of

the

inputs

that

influence

the

issuer

and

the

market(s)

in

which

the

security

is

purchased

and

sold.

The

value

of

the

Fund’s

investments

in

foreign

securities

is

generally

determined

using

the

same

valuation

methods

and

inputs

as

other

Fund

investments,

as

discussed

above.

Foreign

security

prices

expressed

in

local

currency

values

are

normally

translated

from

the

local

currency

into

U.S.

dollars

using

the

exchange

rates

as

of

4:00

p.m.

Eastern

Time

on

days

the

New

York

Stock

Exchange

(“NYSE”)

is

open

for

business.

Management

has

approved

the

use

of

ICE

Data

Services

(“ICE”)

to

assist

in

determining

the

fair

value

of

foreign

equity

securities

when

changes

in

the

value

of

a

certain

index

suggest

that

the

closing

prices

on

the

foreign

exchanges

may

no

longer

represent

the

amount

that

the

Fund

could

expect

to

receive

for

those

securities

or

when

foreign

markets

are

closed

and

U.S.

markets

are

open.

In

each

of

these

events,

ICE

will

provide

adjusted

prices

for

certain

foreign

equity

securities

using

a

statistical

analysis

of

historical

correlations

of

multiple

factors

(Level

2

inputs).

Management

has

also

approved

the

use

of

ICE

to

evaluate

the

prices

of

foreign

debt

securities

as

of

the

time

at which

the

Fund’s

share

price

is

calculated.

ICE

utilizes

benchmark

spread

and

yield

curves

and

evaluates

available

market

activity

from

the

local

close

to

the

time

as

of

which

the

Fund’s

share

price

is

calculated

(Level

2

inputs)

to

assist

in

determining

prices

for

certain

foreign

debt

securities.

In

the

case

of

both

foreign

equity

and

foreign

debt

securities,

in

the

absence

of

precise

information

about

the

market

values

of

these

foreign

securities

as

of

the

time at

which

the

Fund’s

share

price

is

calculated,

Management

has

determined based

on available

data

that

prices

adjusted

or

evaluated

in

this

way

are

likely

to

be

closer

to

the

prices

the

Fund

could

realize

on

a

current

sale

than

the

prices

of

those

securities

established

at

the

close

of

the

foreign

markets

in

which

the

securities

primarily

trade.

Fair

value

prices

are

necessarily

estimates,

and

there

is

no

assurance

that

such

a

price

will

be

at

or

close

to

the

price

at

which

the

security

is

next

quoted

or

traded.

4

Foreign

currency

translations:

The

accounting

records

of

the

Fund

and

Subsidiary

are

maintained

in

U.S.

dollars.

Foreign

currency

amounts

are

normally

translated

into

U.S.

dollars

using

the

exchange

rate

as

of

4:00

p.m.

Eastern

Time,

on

days

the

NYSE

is

open

for

business,

to

determine

the

value

of

investments,

other

assets

and

liabilities.

Purchase

and

sale

prices

of

securities,

and

income

and

expenses,

are

translated

into

U.S.

dollars

at

the

prevailing

rate

of

exchange

on

the

respective

dates

of

such

transactions.

Net

unrealized

foreign

currency

gain/(loss),

if

any,

arises

from

changes

in

the

value

of

assets

and

liabilities,

other

than

investments

in

securities,

as

a

result

of

changes

in

exchange

rates

and

is

stated

separately

in

the

Consolidated

Statement

of

Operations.

5

Securities

transactions

and

investment

income:

Securities

transactions

are

recorded

on

trade

date

for

financial

reporting

purposes.

Dividend

income

is

recorded

on

the

ex-dividend

date

or,

for

certain

foreign

dividends,

as

soon

as

the

Fund

becomes

aware

of

the

dividends.

Non-cash

dividends

included

in

dividend

income,

if

any,

are

recorded

at

the

fair

market

value

of

the

securities

received.

Interest

income,

including

accretion

of

discount

(adjusted

for

original

issue

discount,

where

applicable)

and

amortization

of

premium,

where

applicable,

is

recorded

on

the

accrual

basis.

Realized

gains

and

losses

from

securities

transactions

and

foreign

currency

transactions,

if

any,

are

recorded

on

the

basis

of

identified

cost

and

stated

separately

in

the

Consolidated

Statement

of

Operations.

Included

in

net

realized

gain/(loss)

on

investments

are

40

proceeds

from

the

settlement

of

class

action

litigation(s)

in

which

the

Fund

participated

as

a

class

member.

The

amount

of

such

proceeds

for

the

year

ended

October

31,

2023,

was

$17,698.

6

Income

tax

information:

The

Fund

is

treated

as

a

separate

entity

for

U.S.

federal

income

tax

purposes.

It

is

the

policy

of

the

Fund

to

continue

to

qualify

for

treatment

as

a

regulated

investment

company

(“RIC”)

by

complying

with

the

requirements

of

the

U.S.

Internal

Revenue

Code

applicable

to

RICs

and

to

distribute

substantially

all

of

its

net

investment

income

and

net

realized

capital

gains

to

its

shareholders.

To

the

extent

the

Fund

distributes

substantially

all

of

its

net

investment

income

and

net

realized

capital

gains

to

shareholders,

no

federal

income

or

excise

tax

provision

is

required.

ASC

740

“Income

Taxes”

sets

forth

a

minimum

threshold

for

financial

statement

recognition

of

a

tax

position

taken,

or

expected

to

be

taken,

in

a

tax

return.

The

Fund

recognizes

interest

and

penalties,

if

any,

related

to

unrecognized

tax

positions

as

an

income

tax

expense

in

the

Consolidated

Statement

of

Operations.

The

Fund

is

subject

to

examination

by

U.S.

federal

and

state

tax

authorities

for

returns

filed

for

the

tax

years

for

which

the

applicable

statutes

of

limitations

have

not

yet

expired.

Management

has

analyzed

the

Fund's

tax

positions

taken

or

expected

to

be

taken

on

federal

and

state

income

tax

returns

for

all

open

tax

years

(the

current

and

the

prior

three

tax

years)

and

has

concluded

that

no

provision

for

income

tax

is

required

in

the

Fund's

financial

statements.

The

Subsidiary

is

a

controlled

foreign

corporation

under

the

U.S.

Internal

Revenue

Code.

As

a

U.S.

shareholder

of

a

controlled

foreign

corporation,

the

Fund

will

include

in

its

taxable

income

its

share

of

the

Subsidiary’s

current

earnings

and

profits

(including

net

realized

gains).

Any

deficit

generated

by

the

Subsidiary

will

be

disregarded

for

purposes

of

computing

the

Fund’s

taxable

income

in

the

current

period

and

also

disregarded

for

all

future

periods.

For

federal

income

tax

purposes,

the

estimated

cost

of

investments

held

at

October

31,

2023,

was

$120,358,805.

The

estimated

gross

unrealized

appreciation

was

$1,859,958

and

estimated

gross

unrealized

depreciation

was

$13,457,391

resulting

in

net

unrealized depreciation

in

value

of

investments

of

$11,597,433

based

on

cost

for

U.S.

federal

income

tax

purposes.

Income

distributions

and

capital

gain

distributions

are

determined

in

accordance

with

income

tax

regulations,

which

may

differ

from

GAAP.

These

differences

are

primarily

due

to

differing

treatments

of

income

and

gains

on

various

investment

securities

held

by

the

Fund,

timing

differences

and

differing

characterization

of

distributions

made

by

the

Fund.

The

Fund

may

also

utilize

earnings

and

profits

distributed

to

shareholders

on

redemption

of

their

shares

as

part

of

the

dividends-paid

deduction

for

income

tax

purposes.

Any

permanent

differences

resulting

from

different

book

and

tax

treatment

are

reclassified

at

year-end

and

have

no

impact

on

net

income,

NAV

or

NAV

per

share

of

the

Fund.

For

the

year

ended

October

31,

2023,

the

Fund

recorded

permanent

reclassifications

primarily

related

to

tax

adjustments

due

to

partnerships

and

wholly

owned

subsidiary

income

and

gain

(loss).

For

the

year

ended

October

31,

2023,

the

Fund

recorded

the

following

permanent

reclassifications:

The

tax

character

of

distributions

paid

during

the

years

ended

October

31,

2023,

and

October

31,

2022,

was

as

follows:

Paid-in

Capital

Total

Distributable

Earnings/(Losses)

(

$

1,432,021)

$1,432,021

Distributions

Paid

From:

Ordinary

Income

Tax-Exempt

Income

Long-Term

Capital

Gain

Return

of

Capital

Total

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

$4,017,486

$110,520

$–

$–

$–

$–

$–

$–

$4,017,486

$110,520

41

As

of

October

31,

2023,

the

components

of

distributable

earnings

(accumulated

losses)

on

a

U.S.

federal

income

tax

basis

were

as

follows:

The

temporary

differences

between

book

basis

and

tax

basis

distributable

earnings

are

primarily

due

to

losses

disallowed

and/or

recognized

on

wash

sales

and

straddles,

mark-to-market

on

adjustments

on

swaps,

futures

and

forward

contracts,

amortization

of

organizational

expenses,

tax

adjustments

related

to

swap

contracts

and

other

investments,

mark-to-market

adjustments

on

passive

foreign

investment

companies

(“PFICs”),

tax

adjustments

due

to

partnerships,

wholly

owned

subsidiary

inclusions,

and

amortization

adjustments.

To

the

extent

the

Fund’s

net

realized

capital

gains,

if

any,

can

be

offset

by

capital

loss

carryforwards,

it

is

the

policy

of

the

Fund

not

to

distribute

such

gains.

Capital

loss

carryforward

rules

allow

for

RICs

to

carry

forward

capital

losses

indefinitely

and

to

retain

the

character

of

capital

loss

carryforwards

as

short-term

or

long-term.

As

determined

at

October

31,

2023,

the

Fund

had

unused

capital

loss

carryforwards

available

for

federal

income

tax

purposes

to

offset

net

realized

capital

gains,

if

any,

as

follows:

During

the

year

ended

October

31,

2023,

the

Fund

utilized

capital

loss

carryforwards

of

$1,495,619.

7

Foreign

taxes:

Foreign

taxes

withheld,

if

any,

represent

amounts

withheld

by

foreign

tax

authorities,

net

of

refunds

recoverable.

Foreign

capital

gains

on

certain

foreign

securities

may

be

subject

to

foreign

taxes,

which

are

accrued

as

applicable.

At

October

31,

2023,

there

were

no

outstanding

balances

of

accrued

capital

gains

taxes

for

the

Fund.

As

a

result

of

several

European

Court

of

Justice

(“ECJ”)

court

cases

in

certain

countries

across

the

European

Union

(“EU”),

the

Fund

filed

tax

reclaims

for

previously

withheld

taxes

on

dividends

earned

in

those

countries

(“ECJ

tax

reclaims”).

These

additional

filings

are

subject

to

various

administrative

proceedings

by

the

local

jurisdictions’

tax

authorities

within

the

EU,

as

well

as

a

number

of

related

judicial

proceedings.

When

any

such

ECJ

tax

reclaims

are

not

"more

likely

than

not"

to

be

sustained,

no

amounts

are

included

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

The

Fund

has

determined

that

certain

ECJ

tax

reclaims

are

"more

likely

than

not"

to

be

sustained

after

examination

by

tax

authorities.

The

income

recognized

from

these

ECJ

tax

reclaims

is

included

in

"Interest

and

other

income—unaffiliated

issuers"

in

the

Consolidated

Statement

of

Operations

and

the

cost

to

file

these

additional

ECJ

tax

reclaims

(which

are

excluded

from

contractual

expense

limitations)

is

included

in

"Miscellaneous

and

other

fees"

in

the

Consolidated

Statement

of

Operations.

8

Distributions

to

shareholders:

The

Fund

may

earn

income,

net

of

expenses,

daily

on

its

investments.

Distributions

from

net

investment

income

and

net

realized

capital

gains,

if

any,

are

generally

distributed

once

a

year

(usually

in December)

and

are

recorded

on

the

ex-date.

It

is

the

policy

of

the

Fund

to

pass

through

to

its

shareholders

substantially

all

REIT

distributions

and

other

income

it

receives,

less

operating

expenses.

The

distributions

received

from

REITs

are

generally

composed

of

income,

capital

gains,

and/or

return

of

REIT

capital,

but

the

REITs

do

not

report

this

information

to

the

Fund

until

the

following

calendar

year.

At

October

31,

2023,

the

Fund

estimated

these

amounts

for

the

period

January

1,

2023

to

October

31,

2023

within

the

financial

statements

because

the

2023

information

is

not

available

from

the

REITs

until

after

the

Fund’s

fiscal

year-end.

All

estimates

are

based

upon

REIT

information

sources

available

to

the

Fund

together

with

actual

IRS

Forms

1099-DIV

received

to

date. For

the

year

ended

October

31,

2023,

the

character

of

distributions

paid

to

shareholders

of

the

Fund,

if

any,

disclosed

within

Undistributed

Ordinary

Income

Undistributed

Long-Term

Capital

Gain

Unrealized

Depreciation

Loss

Carryforwards

and

Deferrals

Other

Temporary

Differences

Total

$

1,090,272

$

—

$(11,595,927)

$

(101,432,983)

$(73,562)

$

(112,012,200)

Capital

Loss

Carryforwards

Long-Term

Short-Term

$

35,326,769

$66,106,214

42

the

Consolidated

Statements

of

Changes

in

Net

Assets

is

based

on

estimates

made

at

that

time.

Based

on

past

experience

it

is

possible

that

a

portion

of

the

Fund’s

distributions

during

the

current

fiscal

year,

if

any,

will

be

considered

tax

return

of

capital,

but

the

actual

amount

of

the

tax

return

of

capital,

if

any,

is

not

determinable

until

after

the

Fund’s

fiscal

year-end.

After

calendar

year-end,

when

the

Fund

learns

the

nature

of

the

distributions

paid

by

REITs

during

that

year,

distributions

previously

identified

as

income

may

be

recharacterized

as

return

of

capital

and/or

capital

gain.

After

all

applicable

REITs

have

informed

the

Fund

of

the

actual

breakdown

of

distributions

paid

to

the

Fund

during

its

fiscal

year,

estimates

previously

recorded

are

adjusted

to

reflect

actual

results.

As

a

result,

the

composition

of

the

Fund’s

distributions

as

reported

herein,

may

differ

from

the

final

composition

determined

after

calendar

year-end

and

reported

to

the

Fund

shareholders

on

IRS

Form

1099-DIV.

9

Expense

allocation:

Certain

expenses

are

applicable

to

multiple

funds

within

the

complex

of

related

investment

companies.

Expenses

directly

attributable

to

a

fund

are

charged

to

that

fund.

Expenses

of

the

Trust

that

are

not

directly

attributable

to

a

particular

series

of

the

Trust

(e.g., the

Fund)

are

allocated

among

the

series

of

the

Trust,

on

the

basis

of

relative

net

assets,

except

where

a

more

appropriate

allocation

of

expenses

to

each

of

the

series

can

otherwise

be

made

fairly.

Expenses

borne

by

the

complex

of

related

investment

companies,

which

includes

open-end

and

closed-end

investment

companies

for

which

NBIA

serves

as

investment

manager,

that

are

not

directly

attributable

to

a

particular

investment

company

in

the

complex

(e.g.,

the

Trust)

or

series

thereof

are

allocated

among

the

investment

companies

in

the

complex

or

series

thereof

on

the

basis

of

relative

net

assets,

except

where

a

more

appropriate

allocation

of

expenses

to

each

of

the

investment

companies

in

the

complex

or

series

thereof

can

otherwise

be

made

fairly.

The

Fund’s

expenses

(other

than

those

specific

to

each

class)

are

allocated

proportionally

each

day

among

its

classes

based

upon

the

relative

net

assets

of

each

class.

10

Investments

in

foreign

securities:

Investing

in

foreign

securities

may

involve

sovereign

and

other

risks,

in

addition

to

the

credit

and

market

risks

normally

associated

with

domestic

securities.

These

additional

risks

include

the

possibility

of

adverse

political

and

economic

developments

(including

political

instability,

nationalization,

expropriation,

or

confiscatory

taxation)

and

the

potentially

adverse

effects

of

unavailability

of

public

information

regarding

issuers,

less

governmental

supervision

and

regulation

of

financial

markets,

reduced

liquidity

of

certain

financial

markets,

and

the

lack

of

uniform

accounting,

auditing,

and

financial

reporting

standards

or

the

application

of

standards

that

are

different

or

less

stringent

than

those

applied

in

the

United

States.

Foreign

securities

also

may

experience

greater

price

volatility,

higher

rates

of

inflation,

and

delays

in

settlement.

11

Securities

sold

short:

The

Fund

may

engage

in

short

sales,

which

are

sales

of

securities

which

have

been

borrowed

from

a

third

party

on

the

expectation

that

the

market

price

will

decline.

If

the

price

of

the

securities

decreases,

the

Fund

will

make

a

profit

by

purchasing

the

securities

in

the

open

market

at

a

price

lower

than

the

one

at

which

it

sold

the

securities.

If

the

price

of

the

securities

increases,

the

Fund

may

have

to

cover

its

short

positions

at

a

price

higher

than

the

short

sale

price,

resulting

in

a

loss.

Gains

are

limited

to

the

price

at

which

the

Fund

sold

the

security

short,

while

losses

are

potentially

unlimited

in

size.

The

Fund

pledges

securities

and/or

other

assets

to

the

lender

as

collateral.

Proceeds

received

from

short

sales

may

be

maintained

by

the

lender

as

collateral

or

may

be

released

to

the

Fund

and

used

to

purchase

additional

securities

or

for

any

other

purpose.

Proceeds

maintained

by

the

lender

are

included

in

the

“Cash

collateral

segregated

for

short

sales”

on

the

Consolidated

Statement

of

Assets

and

Liabilities.

The

Fund

is

contractually

responsible

to

remit

to

the

lender

any

dividends

and

interest

payable

on

securities

while

those

securities

are

being

borrowed

by

the

Fund.

The

Fund

may

receive

or

pay

the

net

of

the

interest

charged

by

the

prime

broker

on

the

borrowed

securities

and

a

financing

charge

for

the

difference

in

the

market

value

of

the

short

position

and

the

cash

collateral

deposited

with

the

broker.

This

income

or

fee

is

calculated

daily

based

upon

the

market

value

of

each

borrowed

security

and

a

variable

rate

that

is

dependent

on

the

availability

of

the

security.

These

costs

related

to

short

sales

(i.e.,

dividend

and

interest

remitted

to

the

lender

and

interest

charged

by

the

prime

broker)

are

recorded

as

an

expense

of

the

Fund

and

are

excluded

from

the

contractual

expense

limitation.

A

net

negative

expense,

if

any,

represents

a

gain

to

the

Fund

as

the

total

cash

rebates

received

exceeded

the

other

costs

related

to

short

sales.

The

net

amount

of

fees

incurred

43

are

included

in

the

“Dividend

and

interest

expense

on

securities

sold

short”

on

the

Consolidated

Statement

of

Operations

and were

$248,115

for

the

year

ended

October

31,

2023.

At

October

31,

2023,

the

Fund

had

cash

pledged

in

the

amount

of

$4,569,836

to

JPMorgan

Chase

Bank,

NA

(“JPM”),

as

collateral

for

short

sales.

In

addition,

JPM

has

a

perfected

security

interest

in

these

assets.

12

Investment

company

securities

and

exchange

traded

funds:

The

Fund

may

invest

in

shares

of

other

registered

investment

companies,

including

exchange

traded

funds

(“ETFs”),

within

the

limitations

prescribed

by

the

1940

Act,

in

reliance

on

rules

adopted

by

the

SEC,

particularly

Rule

12d1-4

or

any

other

applicable

exemptive

relief.

Rule

12d1-4

permits

investments

in

other

registered

investment

companies

in

excess

of

the

limitations

of

the

1940

Act

if

the

Fund

complies

with

the

conditions

of

the

Rule.

Shareholders

of

the

Fund

will

indirectly

bear

their

proportionate

share

of

any

management

fees

and

other

expenses

paid

by

such

other

investment

companies,

in

addition

to

the

management

fees

and

expenses

of

the

Fund.

13

When-issued/delayed

delivery

securities:

The

Fund

may

purchase

securities

with

delivery

or

payment

to

occur

at

a

later

date

beyond

the

normal

settlement

period.

At

the

time

the

Fund

enters

into

a

commitment

to

purchase

a

security,

the

transaction

is

recorded,

and

the

value

of

the

security

is

reflected

in

the

NAV.

The

price

of

such

security

and

the

date

when

the

security

will

be

delivered

and

paid

for

are

fixed

at

the

time

the

transaction

is

negotiated.

The

value

of

the

security

may

vary

with

market

fluctuations.

No

interest

accrues

to

the

Fund

until

payment

takes

place.

When-issued

and

delayed

delivery

transactions

can

have

a

leverage-like

effect

on

the

Fund,

which

can

increase

fluctuations

in

the

Fund’s

NAV.

Certain

risks

may

arise

upon

entering

into

when-issued

or

delayed

delivery

securities

transactions

from

the

potential

inability

of

counterparties

to

meet

the

terms

of

their

contracts

or

if

the

issuer

does

not

issue

the

securities

due

to

political,

economic,

or

other

factors.

Additionally,

losses

may

arise

due

to

changes

in

the

value

of

the

underlying

securities.

14

Derivative

instruments:

The

Fund’s

use

of

derivatives

during

the

year

ended

October

31,

2023,

is

described

below.

Please

see

the

Consolidated

Schedule

of

Investments

for

the

Fund’s

open

positions

in

derivatives

at

October

31,

2023.

The

disclosure

requirements

of

ASC

815

“Derivatives

and

Hedging”

(“ASC

815”)

distinguish

between

derivatives

that

qualify

for

hedge

accounting

and

those

that

do

not.

Because

investment

companies

value

their

derivatives

at

fair

value

and

recognize

changes

in

fair

value

through

the

Consolidated

Statement

of

Operations,

they

do

not

qualify

for

hedge

accounting.

Accordingly,

even

though

the

Fund’s

investments

in

derivatives

may

represent

economic

hedges,

they

are

considered

non-hedge

transactions

for

purposes

of

this

disclosure.

Rule

18f-4

under

the

1940

Act

regulates

the

use

of

derivatives

for

certain

funds

registered

under

the

1940

Act

(“Rule

18f-4”).

Unless

the

Fund

qualifies

as

a

“limited

derivatives

user”

as

defined

in

Rule

18f-4,

the

Fund

is

subject

to

a

comprehensive

derivatives

risk

management

program,

is

required

to

comply

with

certain

value-at-risk

based

leverage

limits

and

is

required

to

provide

additional

disclosure

both

publicly

and

to

the

SEC

regarding

its

derivatives

positions.

If the

Fund

qualifies

as

a

limited

derivatives

user,

Rule

18f-4

requires

the

Fund

to

have

policies

and

procedures

to

manage

its

aggregate

derivatives

risk.

Futures

contracts:

During

the

year

ended

October

31,

2023,

the

Fund

used

futures

for

economic

hedging

purposes

and

to

enhance

returns.

At

the

time

the

Fund

or

Subsidiary

enters

into

a

futures

contract,

it

is

required

to

deposit

with

the

futures

commission

merchant

a

specified

amount

of

cash

or

liquid

securities,

known

as

“initial

margin,”

which

is

a

percentage

of

the

value

of

the

futures

contract

being

traded

that

is

set

by

the

exchange

upon

which

the

futures

contract

is

traded.

Each

day,

the

futures

contract

is

valued

at

the

official

settlement

price

of

the

board

of

trade

or

U.S.

commodity

exchange

on

which

such

futures

contract

is

traded.

Subsequent

payments,

known

as

“variation

margin,”

to

and

from

the

broker

are

made

on

a

daily

basis,

or

as

needed,

as

the

market

price

of

the

futures

contract

fluctuates.

Daily

variation

margin

adjustments,

arising

from

this

“mark

to

market,”

are

recorded

by

the

Fund

or

Subsidiary

as

unrealized

gains

or

losses.

Although

some

futures

by

their

terms

call

for

actual

delivery

or

acquisition

of

the

underlying

securities

or

currency,

in

most

cases

the

contracts

are

closed

out

prior

to

delivery

by

offsetting

purchases

or

sales

of

matching

futures.

When

the

contracts

are

closed,

the

Fund

or

Subsidiary

recognizes

a

gain

or

loss.

Risks

of

entering

into

futures

contracts

include

the

possibility

there

may

be

an

illiquid

market,

possibly

at

a

time

44

of

rapidly

declining

prices,

and/or

a

change

in

the

value

of

the

contract

may

not

correlate

with

changes

in

the

value

of

the

underlying

securities.

Futures

executed

on

regulated

futures

exchanges

have

minimal

counterparty

risk

to

the

Fund

or

Subsidiary

because

the

exchange’s

clearinghouse

assumes

the

position

of

the

counterparty

in

each

transaction.

Thus,

the

Fund

or

Subsidiary

is

exposed

to

risk

only

in

connection

with

the

clearinghouse

and

not

in

connection

with

the

original

counterparty

to

the

transaction.

For

U.S.

federal

income

tax

purposes,

futures

transactions

undertaken

by

the

Fund

or

Subsidiary

may

cause

the

Fund

or

Subsidiary

to

recognize

gains

or

losses

from

marking

contracts

to

market

even

though

its

positions

have

not

been

sold

or

terminated,

may

affect

the

character

of

the

gains

or

losses

recognized

as

long-term

or

short-term,

and

may

affect

the

timing

of

some

capital

gains

and

losses

realized

by

the

Fund

or

Subsidiary.

Also,

the

Fund’s

or

Subsidiary’s

losses

on

transactions

involving

futures

contracts

may

be

deferred

rather

than

being

taken

into

account

currently

in

calculating

the

Fund’s

or

Subsidiary’s

taxable

income.

Forward

foreign

currency

contracts:

During

the

year

ended

October

31,

2023,

the

Fund

used

forward

foreign

currency

contracts

to

hedge

foreign

currency

and

to

enhance

returns.

A

forward

contract

is

an

agreement

between

two

parties

to

buy

or

sell

a

specific

currency

for

another

at

a

set

price

on

a

future

date

and

is

individually

negotiated

and

privately

traded

by

currency

traders

and

their

customers

in

the

interbank

market.

The

market

value

of

a

forward

contract

fluctuates

with

changes

in

forward

currency

exchange

rates.

Forward

contracts

are

marked

to

market

daily,

and

the

change

in

value

is

recorded

by

the

Fund

as

an

unrealized

gain

or

loss.

At

the

consummation

of

a

forward

contract

to

purchase

or

sell

currency,

the

Fund

may

either

exchange

the

currencies

specified

at

the

maturity

of

the

forward

contract

or

enter

into

a

closing

transaction

involving

the

purchase

or

sale

of

an

offsetting

forward

contract.

Closing

transactions

with

respect

to

forward

contracts

are

usually

performed

with

the

counterparty

to

the

original

forward

contract.

The

gain

or

loss

arising

from

the

difference

between

the

U.S.

dollar

cost

of

the

original

contract

and

the

value

of

the

foreign

currency

in

U.S.

dollars

upon

closing

a

contract

is

included

in

“Net

realized

gain/(loss)

on

settlement

of

forward

foreign

currency

contracts”

in

the

Consolidated

Statement

of

Operations.

These

contracts

may

involve

market

risk

in

excess

of

the

unrealized

gain

or

loss

reflected

in

the

Fund’s

Consolidated

Statement

of

Assets

and

Liabilities.

In

addition,

the

Fund

could

be

exposed

to

risks

associated

with

fluctuations

in

foreign

currency

and

the

risk

the

counterparty

will

fail

to

fulfill

its

obligation.

Equity

swap

contracts:

During

the

year

ended

October

31,

2023,

the

Fund

used

equity

swaps

to

provide

investment

exposure

to

certain

investments,

primarily

foreign

securities.

Equity

swaps

are

two-party

contracts

in

which

counterparties

exchange

the

return

on

a

specified

reference

security

for

the

return

based

on

a

fixed

or

floating

interest

rate

during

the

period

of

the

swap.

Upon

entering

an

equity

swap,

the

Fund

may

be

required

to

pledge

an

amount

of

cash

and/or

other

assets

to

the

broker

which

is

equal

to

a

certain

percentage

of

the

contract

amount

(initial

margin).

Subsequent

payments

known

as

variation

margins

are

made

or

received

by

the

Fund

periodically

depending

on

the

fluctuations

in

the

value

of

the

underlying

security.

Equity

swaps

are

marked

to

market

daily

based

on

the

value

of

the

underlying

reference

entity

and

the

change,

if

any,

is

recorded

as

an

unrealized

gain

or

loss.

Equity

swaps

normally

do

not

involve

the

delivery

of

securities

or

other

underlying

assets.

Cash

settlement

in

and

out

of

the

swap

may

occur

at

a

reset

date

or

any

other

date,

at

the

discretion

of

the

Fund

and

the

counterparty,

over

the

life

of

the

agreement,

and

is

generally

determined

based

on

limits

and

thresholds

established

as

part

of

an

agreement

between

the

Fund

and

the

counterparty.

If

the

other

party

to

an

equity

swap

defaults,

the

Fund’s

risk

of

loss

consists

of

the

net

amount

of

payments

that

the

Fund

is

contractually

entitled

to

receive,

if

any.

Equity

swaps

are

derivatives,

and

their

value

can

be

very

volatile.

To

the

extent

that

future

market

trends,

the

values

of

assets

or

economic

factors

are

not

accurately

analyzed

and

predicted,

the

Fund

may

suffer

a

loss,

which

may

exceed

the

related

amounts

shown

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

Periodic

payments

received

or

paid

by

the

Fund

are

recorded

as

realized

gains

or

losses

in

the

Consolidated

Statement

of

Operations.

Options:

During

the

year

ended

October

31,

2023,

the

Fund

used

options

written

to

generate

incremental

returns.

The

Fund

used

purchased

options

for

economic

hedging

purposes,

to

manage

or

adjust

the

risk

profile

and

investment

exposure

of

the

Fund

or

individual

positions,

to

obtain

or

reduce

exposure

to

certain

markets,

to

establish

net

short

or

long

positions

for

markets

or

securities

and

to

enhance

total

return.

45

Premiums

paid

by

the

Fund

upon

purchasing

a

call

or

put

option

are

recorded

in

the

asset

section

of

the

Fund’s

Consolidated

Statement

of

Assets

and

Liabilities

and

are

subsequently

adjusted

to

the

current

market

value.

When

an

option

is

exercised,

closed,

or

expired,

the

Fund

realizes

a

gain

or

loss

and

the

asset

is

eliminated.

For

purchased

call

options,

the

Fund’s

loss

is

limited

to

the

amount

of

the

option

premium

paid.

Premiums

received

by

the

Fund

upon

writing

a

call

option

or

a

put

option

are

recorded

in

the

liability

section

of

the

Fund’s

Consolidated

Statement

of

Assets

and

Liabilities

and

are

subsequently

adjusted

to

the

current

market

value.

When

an

option

is

exercised,

closed,

or

expired,

the

Fund

realizes

a

gain

or

loss

and

the

liability

is

eliminated.

When

the

Fund

writes

a

call

option

on

an

underlying

asset

it

does

not

own,

its

exposure

on

such

an

option

is

theoretically

unlimited.

When

writing

a

covered

call

option,

the

Fund,

in

return

for

the

premium,

gives

up

the

opportunity

for

profit

from

a

price

increase

in

the

underlying

security

above

the

exercise

price,

but

conversely

retains

the

risk

of

loss

should

the

price

of

the

security

decline.

When

writing

a

put

option,

the

Fund,

in

return

for

the

premium,

takes

the

risk

that

it

must

purchase

the

underlying

security

at

a

price

that

may

be

higher

than

the

current

market

price

of

the

security.

If

a

call

or

put

option

that

the

Fund

has

written

expires

unexercised,

the

Fund

will

realize

a

gain

for

the

amount

of

the

premium.

All

securities

covering

outstanding

written

options

are

held

in

escrow

by

the

custodian

bank.

At

October

31,

2023,

the

Fund

had

the

following

derivatives

(which

did

not

qualify

as

hedging

instruments

under

ASC

815),

grouped

by

primary

risk

exposure:

Asset

Derivatives

Liability

Derivatives

Consolidated

Statement

of

Assets

and

Liabilities

Location

Value

Consolidated

Statement

of

Assets

and

Liabilities

Location

Value

Over

the

counter

swaps

Equity

risk

Over

the

counter

swap

contracts,

at

value

(1)

$

645,686

Over

the

counter

swap

contracts,

at

value

(1)

$

(1,737,826)

Forward

contracts

Foreign

currency

risk

Receivable

for

forward

foreign

currency

contracts

916,931

Payable

for

forward

foreign

currency

contracts

(698,078)

Futures

Interest

rate

risk

Receivable/Payable

for

variation

margin

on

futures

contracts

(2)

438,703

Receivable/Payable

for

variation

margin

on

futures

contracts

(2)

(48,771)

Foreign

currency

risk

Receivable/Payable

for

variation

margin

on

futures

contracts

(2)

405,342

Receivable/Payable

for

variation

margin

on

futures

contracts

(2)

(2,494)

Equity

risk

Receivable/Payable

for

variation

margin

on

futures

contracts

(2)

226,565

Receivable/Payable

for

variation

margin

on

futures

contracts

(2)

(6,848)

Commodity

risk

Receivable/Payable

for

variation

margin

on

futures

contracts

(2)

123,770

Receivable/Payable

for

variation

margin

on

futures

contracts

(2)

(41,938)

Total

Futures

1,194,380

(100,051)

(1)

“Over

the

counter

swaps”

reflects

the

cumulative

unrealized

appreciation/(depreciation)

of

the

over

the

counter

swap

contracts

plus

accrued

interest

as

of

October

31,

2023.

(2)

“Futures”

reflects

the

cumulative

unrealized

appreciation/(depreciation)

of

futures

as

of

October

31,

2023,

which

is

reflected

in

the

Consolidated

Statement

of

Assets

and

Liabilities

under

the

caption

“Total

distributable

earnings/(losses).”

The

current

day’s

variation

margin

as

of

October

31,

2023,

if

any,

is

reflected

in

the

Consolidated

Statement

of

Assets

and

Liabilities

under

the

caption

“Receivable/Payable

for

variation

margin

on

futures

contracts.”

46

The

impact

of

the

use

of

these

derivative

instruments

on

the

Consolidated

Statement

of

Operations

during

the year

ended

October

31,

2023,

was

as

follows:

While

the

Fund

may

receive

rights

and

warrants

in

connection

with

its

investments

in

securities,

these

rights

and

warrants

are

not

considered

“derivative

instruments”

under

ASC

815.

15

Offsetting

assets

and

liabilities:

The

Fund

is

required

to

disclose

both

gross

and

net

information

for

assets

and

liabilities

related

to

over

the

counter

derivatives,

repurchase

and

reverse

repurchase

agreements,

and

securities

lending

and

securities

borrowing

transactions

that

are

eligible

for

offset

or

subject

to

an

enforceable

master

netting

or

similar

agreement.

The

Fund’s

over

the

counter

derivative

assets

and

liabilities

at

fair

value

by

type

are

reported

gross

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

The

following

tables

present

the

Fund’s

derivative

assets

and

liabilities

by

counterparty,

net

of

amounts

available

for

offset

under

a

master

netting

or

similar

agreement

and

net

of

the

related

collateral

received

by

the

Fund

for

assets

and

pledged

by

the

Fund

for

liabilities

as

of

October

31,

2023.

Net

Realized

Gain/

(Loss)

on

Derivatives

(1)

Change

in

Net

Unrealized

Appreciation/

(Depreciation)

on

Derivatives

(2)

Over

the

counter

swaps

Equity

risk

$

425,369

$

(251,412)

Futures

Interest

rate

risk

(571,392)

324,710

Foreign

currency

risk

(759,440)

21,597

Equity

risk

(681,206)

195,766

Commodity

risk

(902,669)

54,138

Total

Futures

(2,914,707)

596,211

Forward

contracts

Foreign

currency

risk

(759,225)

(65,351)

Options

purchased

Equity

risk

(25,286)

–

Options

written

Equity

risk

4,942

(137)

(1)

Net

realized

gain/(loss)

on

derivatives

is

located

in

the

Consolidated

Statement

of

Operations

each

under

the

caption,

"Net

realized

gain/(loss)

on:"

Forward

contracts            

Settlement

of

forward

foreign

currency

contracts

Futures        

r

Expiration

or

closing

of

futures

contracts

Swaps                               

Expiration

or

closing

of

swap

contracts

Options

purchased          

Transactions

in

investment

securities

of

unaffiliated

issuers

Options

written                

Expiration

or

closing

of

option

contracts

written

(2)

Change

in

net

unrealized

appreciation/(depreciation)

is

located

in

the

Consolidated

Statement

of

Operations

each

under

the

caption,

"Change

in

net

unrealized

appreciation/(depreciation)

in

value

of:"

Forward

contracts            

Forward

foreign

currency

contracts

Futures                    

r

        Futures

contracts

Swaps                      

r

       Swap

contracts

Options

purchased    

r

Investment

securities

of

unaffiliated

issuers

Options

written        

r

Option

contracts

written

47

o

16

Indemnifications:

Like

many

other

companies,

the

Trust’s

organizational

documents

provide

that

its

officers

(“Officers”)

and

trustees

(“Trustees”)

are

indemnified

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

In

addition,

both

in

some

of

its

principal

service

contracts

and

in

the

normal

course

of

its

business,

the

Trust

enters

into

contracts

that

provide

indemnifications

to

other

parties

for

certain

types

of

losses

or

liabilities.

The

Trust’s

maximum

exposure

under

these

arrangements

is

unknown

as

this

could

involve

future

claims

against

the

Trust.

17

Expense

offset

arrangement:

The

Fund

has

an

expense

offset

arrangement

in

connection

with

its

custodian

contract.

For

the

year

ended

October

31,

2023,

the

impact

of

this

arrangement

was

a

reduction

in

expenses

of

$134.

18

Other:

All

net

investment

income

and

realized

and

unrealized

capital

gains

and

losses

of

the

Fund

are

allocated,

on

the

basis

of

relative

net

assets,

pro

rata

among

its

respective

classes.

Note

B—Investment

Management

Fees,

Administration

Fees,

Distribution

Arrangements,

and

Other

Transactions

with

Affiliates:

The

Fund

retains

NBIA

as

its

investment

manager

under

a

Management

Agreement.

For

such

investment

management

services,

the

Fund

pays

NBIA

an

investment

management

fee

at

the

annual

rate

of

1.700%

of

the

first

$250

million

of

the

Fund’s

average

daily

net

assets,

1.675%

of

the

next

$250

million,

1.650%

of

the

next

$250

million,

1.625%

of

the

next

$250

million,

1.600%

of

the

next

$500

million,

1.575%

of

the

next

$2.5

billion,

and

1.550%

of

average

daily

net

assets

in

excess

of

$4

billion. 

NBIA

has

contractually

agreed

to

waive

its

Class

E

management

fee

for

the

Fund.

This

undertaking

lasts

until

October

31,

2024

and

may

not

be

terminated

during

its

term

without

the

consent

of

the

Board.

Management

fees

contractually

waived

pursuant

to

this

waiver

for

Class

E

are

not

subject

to

recovery

by

NBIA.

For

the

year

ended

October

31,

2023,

the

total

amount

of

management

fees

waived

was $42,119,

which

is

equivalent

to

an

annualized

percentage

rate

of

1.70%

of

Class

E’s

average

daily

net

assets.

Accordingly,

for

the

year

ended

October

31,

2023,

the

investment

management

fee

pursuant

to

the

Description

Gross

Amounts

of

Assets

Presented

in

the

Consolidated

Statement

of

Assets

and

Liabilities

Gross

Amounts

of

Liabilities

Presented

in

the

Consolidated

Statement

of

Assets

and

Liabilities

Over

the

counter

swap

contracts

$645,686

$(1,737,826)

Forward

contracts

916,931

(698,078)

Total

$1,562,617

$(2,435,904)

Gross

Amounts

Not

Offset

in

the

Consolidated

Statement

of

Assets

and

Liabilities:

Assets

Liabilities

Counterparty

Gross

Amounts

Presented

in

the

Consolidated

Statement

of

Assets

and

Liabilities

Liabilities

Available

for

Offset

Collateral

Received

(a)

Net

Amount

(b)

Gross

Amounts

Presented

in

the

Consolidated

Statement

of

Assets

and

Liabilities

Assets

Available

for

Offset

Collateral

Pledged

(a)

Net

Amount

(b)

SG

$884,775

$(677,483)

$–

$207,292

$(677,483)

$677,483

$–

$–

JPM

174,188

(153,062)

–

21,126

(153,062)

153,062

–

–

MS

503,654

(503,654)

–

–

(1,605,359)

503,654

1,101,705

–

Total

$1,562,617

$(1,334,199)

$–

$228,418

$(2,435,904)

$1,334,199

$1,101,705

$–

(a)

Collateral

received

(or

pledged)

is

limited

to

an

amount

not

to

exceed

100%

of

the

net

amount

of

assets

(or

liabilities)

in

the

tables

presented

above,

for

each

respective

counterparty.

(b)

A

net

amount

greater

than

zero

represents

amounts

subject

to

loss

as

of

October

31,

2023,

in

the

event

of

a

counterparty

failure.

A

net

amount

less

than

zero

represents

amounts

under-collateralized

to

each

counterparty

as

of

October

31,

2023.

48

Management

Agreement

was

equivalent

to

an

annual

net

effective

rate

of

1.70%

of

the

Fund’s

average

daily

net

assets.

The

Fund

retains

NBIA

as

its

administrator

under

an

Administration

Agreement.

The

administration

fee

is

assessed

at

the

Class

level

and

each

share

class

of

the

Fund,

as

applicable,

pays

NBIA

an

annual

administration

fee

equal

to

the

following:

0.15%

for

Institutional

Class;

0.26%

for

each

of

Class

A

and

Class

C;

0.05%

for

Class

R6,

each

as

a

percentage

of

its

average

daily

net

assets.

Class

E

shares

do

not

pay

an

administration

fee.

Additionally,

NBIA

retains

JPM

as

its

sub-administrator

under

a

Sub-Administration

Agreement.

NBIA

pays

JPM

a

fee

for

all

services

received

under

the

Sub-Administration

Agreement.

NBIA

has

contractually

agreed

to

waive

fees

and/or

reimburse

certain

expenses

of

the

Institutional

Class,

Class

A,

Class

C

and

Class

R6

so

that

the

total

annual

operating

expenses

of

those

classes

do

not

exceed

the

expense

limitations

as

detailed

in

the

following

table.

These

undertakings

exclude

interest,

brokerage

commissions,

acquired

fund

fees

and

expenses,

extraordinary

expenses,

taxes,

including

any

expenses

related

to

tax

reclaims

and

dividend

and

interest

expenses

relating

to

short

sales,

if

any

(commitment

fees

relating

to

borrowings

are

treated

as

interest

for

purposes

of

this

exclusion)

("annual

operating

expenses");

consequently,

net

expenses

may

exceed

the

contractual

expense

limitations.

The

expenses

of

the

Subsidiary

are

included

in

the

total

expenses

used

to

calculate

the

reimbursement,

which

the

Fund

has

agreed

to

share

with

the

Subsidiary.

For

the

year

ended

October

31,

2023,

these

Subsidiary

expenses

amounted

to

$139,987.

At

October

31,

2023,

the

Fund’s

contingent

liabilities

to

NBIA

under

the

agreements

were

as

follows:

The

Fund

has

agreed

that

each

of

its

respective

classes

will

repay

NBIA

for

fees

and

expenses

waived

or

reimbursed

for

that

class

provided

that

repayment

does

not

cause

that

class's

annual

operating

expenses

to

exceed

its

contractual

expense

limitation

in

place

at

the

time

the

fees

and

expenses

were

waived

or

reimbursed,

or

the

expense

limitation

in

place

at

the

time

the

Fund

repays

NBIA,

whichever

is

lower.

Any

such

repayment

must

be

made

within

three

years

after

the

year

in

which

NBIA

incurred

the

expense.

During

the

year

ended

October

31,

2023,

there

was

no

repayment

to

NBIA

under

these

agreements.

At

October

31,

2023,

NBIA

engaged

BH-DG

Systematic

Trading

LLP,

GAMCO

Asset

Management

Inc.,

P/E

Global,

LLC

and

Portland

Hill

Asset

Management

Limited

as

subadvisers

of

the

Fund

to

provide

investment

advisory

services.

NBIA

compensates

the

subadvisers

out

of

the

investment

management

fees

it

receives

from

the

Fund.

The

Fund

also

has

a

distribution

agreement

with

Neuberger

Berman

BD

LLC

(the

“Distributor”)

with

respect

to

each

class

of

shares.

The

Distributor

acts

as

agent

in

arranging

for

the

sale

of

class

shares

without

sales

commission

or

other

compensation,

except

as

described

below

for

Class

A

and

Class

C

shares,

and

bears

the

advertising

and

promotion

expenses.

However,

the

Distributor

receives

fees

from

Class

A

and

Class

C

under

their

distribution

plans

(each

a

“Plan”,

collectively,

the

“Plans”)

pursuant

to

Rule

12b-1

under

the

1940

Act.

The

Plans

provide

that,

as

compensation

for

administrative

and

other

services

provided

to

these

classes,

the

Distributor’s

activities

Expenses

Reimbursed

In

the

Year

Ended

October

31,

2021

2022

2023

Subject

to

Repayment

until

October

31,

Contractual

Expense

Limitation

(1)

Expiration

2024

2025

2026

Institutional

Class

1.97%

10/31/26

$

522,331

$

466,613

$

590,513

Class

A

2.33%

10/31/26

52,624

50,562

39,409

Class

C

3.08%

10/31/26

29,872

19,300

13,600

Class

R6

1.87%

10/31/26

20,018

31,554

1,357

(1)

Expense

limitation

per

annum

of

the

respective

class'

average

daily

net

assets.

49

and

expenses

related

to

the

sale

and

distribution

of

these

classes,

and

ongoing

services

provided

to

investors

in

these

classes,

the

Distributor

receives

from

each

of

these

classes

a

fee

at

the

annual

rate

of

0.25%

of

Class

A’s

and

1.00%

of

Class

C’s

average

daily

net

assets.

The

Distributor

receives

this

amount

to

provide

distribution

and

shareholder

servicing

for

these

classes

and

pays

a

portion

of

it

to

institutions

that

provide

such

services.

Those

institutions

may

use

the

payments

for,

among

other

purposes,

compensating

employees

engaged

in

sales

and/or

shareholder

servicing.

The

amount

of

fees

paid

by

each

class

during

any

year

may

be

more

or

less

than

the

cost

of

distribution

and

other

services

provided

to

that

class.

FINRA

rules

limit

the

amount

of

annual

distribution

fees

that

may

be

paid

by

a

mutual

fund

and

impose

a

ceiling

on

the

cumulative

distribution

fees

paid.

The

Trust’s

Plans

comply

with

those

rules.

Class

A

shares

of

the

Fund

are

generally

sold

with

an

initial

sales

charge

of

up

to

5.75%

and

no

contingent

deferred

sales

charge

(“CDSC”),

except

that

a

CDSC

of

1.00%

applies

to

certain

redemptions

made

within

18

months

following

purchases

of

$1

million

or

more

without

an

initial

sales

charge.

Class

C

shares

of

the

Fund

are

sold

with

no

initial

sales

charge

and

a

1.00%

CDSC

if

shares

are

sold

within

one

year

after

purchase.

For

the

year

ended

October

31,

2023,

the

Distributor,

acting

as

underwriter

and

broker-dealer,

received

net

initial

sales

charges

from

the

purchase

of

Class

A

shares

and

CDSCs

from

the

redemption

of

Class

A

and

Class

C

shares

as

follows:

Note

C—Securities

Transactions:

During

the

year

ended

October

31,

2023,

there

were

purchase

and

sale

transactions

of

long-term

securities

(excluding

swaps,

forward

contracts,

futures

and

written

option

contracts)

as

follows:

During

the

year

ended

October

31,

2023,

no

brokerage

commissions

on

securities

transactions

were

paid

to

affiliated

brokers.

Note

D—Fund

Share

Transactions:

Share

activity

for

the

years

ended

October

31,

2023,

and

October

31,

2022,

was

as

follows: 

Underwriter

Broker-Dealer

Net

Initial

Sales

Charge

CDSC

Net

Initial

Sales

Charge

CDSC

Class

A

$3,715

$—

$—

$—

Class

C

—

250

—

—

Purchases

of

U.S.

Government

and

Agency

Obligations

Purchases

excluding

U.S.

Government

and

Agency

Obligations

Securities

Sold

Short

excluding

U.S.

Government

and

Agency

Obligations

Sales

and

Maturities

of

U.S.

Government

and

Agency

Obligations

Sales

and

Maturities

excluding

U.S.

Government

and

Agency

Obligations

Covers

on

Securities

Sold

Short

excluding

U.S.

Government

and

Agency

Obligations

–

$–

$92,717,871

$23,721,694

$–

$90,282,534

$29,258,524

For

the

Year

Ended

October

31,

2023

For

the

Year

Ended

October

31,

2022

Shares

Sold

Shares

Issued

on

Reinvestment

of

Dividends

and

Distributions

Shares

Redeemed

Total

Shares

Sold

Shares

Issued

on

Reinvestment

of

Dividends

and

Distributions

Shares

Redeemed

Total

Institutional

Class

7,940,939

310,502

(9,179,382)

(927,941)

7,053,667

7,933

(2,000,324)

5,061,276

Class

A

156,261

15,341

(221,872)

(50,270)

223,834

—

(124,826)

99,008

Class

C

62,487

4,002

(101,658)

(35,169)

76,488

—

(106,389)

(29,901)

Class

R6

12,285

—

(333,280)

(320,995)

256,986

996

(238,415)

19,567

Class

E

82,253

7,285

(74,477)

15,061

200,163

—

(13,462)

186,701

(a)

50

(a)

Period

from

January

11,

2022

(Commencement

of

Operations)

to

October

31,

2022.

Other:

At

October

31,

2023,

there

were

no

affiliated

persons,

as

defined

in

the

1940

Act,

owning

the

Fund’s

outstanding

shares.

Note

E—Line

of

Credit:

At

October

31,

2023,

the

Fund

was

a

participant

in

a

syndicated

committed,

unsecured

$700,000,000

line

of

credit

(the

“Credit

Facility”),

to

be

used

only

for

temporary

or

emergency

purposes.

Series

of

other

investment

companies

managed

by

NBIA

also

participate

in

this

line

of

credit

on

substantially

the

same

terms.

Interest

is

charged

on

borrowings

under

the

Credit

Facility

at

the

highest

of

(a)

a

federal

funds

effective

rate

plus

1.00%

per

annum,

(b)

a

daily

simple

Secured

Overnight

Financing

Rate

(“SOFR”)

plus

1.10%

per

annum, or

(c)

an

overnight

bank

funding

rate

plus

1.00%

per

annum.

The

Credit

Facility

has

an

annual

commitment

fee

of

0.15%

per

annum

of

the

available

line

of

credit,

which

is

paid

quarterly.

The

Fund

has

agreed

to

pay

its

pro

rata

share

of

the

annual

commitment

fee,

based

on

the

ratio

of

its

individual

net

assets

to

the

net

assets

of

all

participants

at

the

time

the

fee

is

due,

and

interest

charged

on

any

borrowing

made

by

the

Fund

and

other

costs

incurred

by

the

Fund.

Because

several

funds

participate

in

the

Credit

Facility,

there

is

no

assurance

that

the

Fund

will

have

access

to

all

or

any

part

of

the

$700,000,000

at

any

particular

time.

There

were

no

loans

outstanding

under

the

Credit

Facility

at

October

31,

2023.

During

the

year

ended

October

31,

2023,

the

Fund

did

not

utilize

the

Credit

Facility. 

Note

F—Recent

Accounting

Pronouncement:

In

June

2022,

FASB

issued

Accounting

Standards

Update

No.

2022-03,

“Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions”

(“ASU

2022-03”).

ASU

2022-03

clarifies

the

guidance

in

ASC

820,

related

to

the

measurement

of

the

fair

value

of

an

equity

security

subject

to

contractual

sale

restrictions,

where

it

eliminates

the

ability

to

apply

a

discount

to

the

fair

value

of

these

securities,

and

introduces

disclosure

requirements

related

to

such

equity

securities.

The

guidance

is

effective

for

fiscal

years,

and

interim

periods

within

those

fiscal

years,

beginning

after

December

15,

2023,

and

allows

for

early

adoption.

Management

is

currently

evaluating

the

impact

of

applying

this

update. 

In

December

2022,

the

FASB

issued

Accounting

Standards

Update

No.

2022-06,

“Reference

Rate

Reform

(Topic

848)”

(“ASU

2022-06”),

which

is

an

update

to

Accounting

Standards

Update

No.

2021-

01,

“Reference

Rate

Reform

(Topic

848)”

(“ASU

2021-01”)

and

defers

the

sunset

date

for

applying

the

reference

rate

reform

relief

in

Topic

848.

ASU

2021-01

is

an

update

of

ASU

2020-04,

which

is

in

response

to

concerns

about

structural

risks

of

interbank

offered

rates,

and

particularly

the

risk

of

cessation

of

LIBOR.

Regulators

have

undertaken

reference

rate

reform

initiatives

to

identify

alternative

reference

rates

that

are

more

observable

or

transaction

based

and

less

susceptible

to

manipulation.

ASU

2020-04

provides

optional

guidance

for

a

limited

period

of

time

to

ease

the

potential

burden

in

accounting

for

(or

recognizing

the

effects

of)

reference

rate

reform

on

financial

reporting.

ASU

2020-04

is

elective

and

applies

to

all

entities,

subject

to

meeting

certain

criteria,

that

have

contracts,

hedging

relationships,

and

other

transactions

that

reference

LIBOR

or

another

reference

rate

expected

to

be

discontinued

because

of

reference

rate

reform.

The

ASU

2021-01

update

clarifies

that

certain

optional

expedients

and

exceptions

in

Topic

848

for

contract

modifications

and

hedge

accounting

apply

to

derivatives

that

are

affected

by

the

discounting

transition.

The

amendments

in

this

update

are

effective

immediately

through

December

31,

2024,

for

all

entities.

Management

is

currently

evaluating

the

implications,

if

any,

of

the

additional

requirements

and

its

impact

on

the

Fund’s

consolidated

financial

statements.

Note

G—Subsequent

Event:

On

December

14,

2023,

the

Board

approved

the

addition

of Crabel

Capital

Management,

LLC

(“Crabel”)

as

a

new

sub-adviser

to

the

Fund

utilizing

a

managed

futures

strategy.

Once

the

Sub-Advisory

Agreement

is

executed,

a

portion

of

the

Fund's

assets

may

be

allocated

to

Crabel.

Consolidated

Financial

Highlights

Absolute

Return

Multi-Manager

Fund

51

See

Notes

to

Consolidated

Financial

Highlights

The

following

tables

include

selected

data

for

a

share

outstanding

throughout

each

period

and

other

performance

information

derived

from

the

Consolidated

Financial

Statements.

Amounts

that

do

not

round

to

$0.01

or

$(0.01)

per

share

are

presented

as

$0.00

or

$(0.00),

respectively.

Ratios

that

do

not

round

to

0.01%

or

(0.01)%

are

presented

as

0.00%

or

(0.00)%,

respectively.

Net

Assets

with

a

zero

balance,

if

any,

may

reflect

actual

amounts

rounding

to

less

than

$0.1

million.

A

“—”

indicates

that

the

line

item

was

not

applicable

in

the

corresponding

period. 

Net

Asset

Value,

Beginning

of

Year

Net

Investment

Income/

(Loss)

@

Net

Gains

or

Losses

on

Securities

(both

realized

and

unrealized)

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Net

Realized

Capital

Gains

Total

Distributions

Institutional

Class

10/31/2023

$11.87

$0.19

$(0.07)

$0.12

$(0.31)

$—

$(0.31)

10/31/2022

$11.40

$(0.11)

$0.60

$0.49

$(0.02)

$—

$(0.02)

10/31/2021

$10.80

$(0.13)

$0.92

$0.79

$(0.19)

$—

$(0.19)

10/31/2020

$10.97

$0.01

$0.21

$0.22

$(0.39)

$—

$(0.39)

10/31/2019

$10.71

$0.08

$0.19

$0.27

$(0.01)

$—

$(0.01)

Class

A

10/31/2023

$11.62

$0.15

$(0.07)

$0.08

$(0.27)

$—

$(0.27)

10/31/2022

$11.19

$(0.15)

$0.58

$0.43

$—

$—

$—

10/31/2021

$10.60

$(0.18)

$0.92

$0.74

$(0.15)

$—

$(0.15)

10/31/2020

$10.78

$(0.03)

$0.20

$0.17

$(0.35)

$—

$(0.35)

10/31/2019

$10.55

$0.04

$0.19

$0.23

$—

$—

$—

Class

C

10/31/2023

$10.90

$0.06

$(0.06)

$—

$(0.19)

$—

$(0.19)

10/31/2022

$10.58

$(0.23)

$0.55

$0.32

$—

$—

$—

10/31/2021

$10.03

$(0.23)

$0.85

$0.62

$(0.07)

$—

$(0.07)

10/31/2020

$10.20

$(0.10)

$0.20

$0.10

$(0.27)

$—

$(0.27)

10/31/2019

$10.06

$(0.03)

$0.17

$0.14

$—

$—

$—

Class

R6

10/31/2023

$11.88

$0.15

$(0.02)

$0.13

$(0.33)

$—

$(0.33)

10/31/2022

$11.41

$(0.11)

$0.61

$0.50

$(0.03)

$—

$(0.03)

10/31/2021

$10.81

$(0.14)

$0.94

$0.80

$(0.20)

$—

$(0.20)

10/31/2020

$10.98

$0.01

$0.21

$0.22

$(0.39)

$—

$(0.39)

10/31/2019

$10.71

$0.09

$0.19

$0.28

$(0.01)

$—

$(0.01)

Class

E

10/31/2023

$11.97

$0.36

$(0.07)

$0.29

$(0.44)

$—

$(0.44)

Period

from

01/11/2022

^

to

10/31/2022

$11.17

$(0.01)

$0.81

$0.80

$—

$—

$—

52

Net

Asset

Value,

End

of

Year

Total

Return

†d

Net

Assets,

End

of

Year

(in

millions)

Ratio

of

Gross

Expenses

to

Average

Net

Assets

#

Ratio

of

Gross

Expenses

to

Average

Net

Assets

(excluding

dividend

and

interest

expense

relating

to

short

sales)

#

Ratio

of

Net

Expenses

to

Average

Net

Assets

Ø

Ratio

of

Net

Expenses

to

Average

Net

Assets

(excluding

dividend

and

interest

expense

relating

to

short

sales)

Ø

Ratio

of

Net

Investment

Income/

(Loss)

to

Average

Net

Assets

Portfolio

Turnover

Rate

(including

securities

sold

short)

Portfolio

Turnover

Rate

(excluding

securities

sold

short)

$11.68

1.12%

$111.1

2.45%

2.46%

1.97%

1.97%

1.66%

201%

178%

$11.87

4.30%

$124.0

2.93%

2.67%

2.24%

1.98%

(0.97)%

204%

204%

$11.40

7.40%

$61.4

2.94%

2.74%

2.17%

1.97%

(1.16)%

296%

308%

$10.80

2.01%

$84.5

2.69%

2.54%

2.12%

1.97%

0.10%

230%

219%

$10.97

2.48%

$157.6

2.59%

2.27%

2.30%

1.98%

0.77%

248%

246%

$11.43

0.79%

$7.6

2.81%

2.82%

2.33%

2.33%

1.32%

201%

178%

$11.62

3.84%

$8.3

3.29%

3.02%

2.58%

2.31%

(1.37)%

204%

204%

$11.19

7.07%

$6.9

3.32%

3.11%

2.54%

2.33%

(1.60)%

296%

308%

$10.60

1.58%

$6.6

3.22%

3.08%

2.47%

2.33%

(0.32)%

230%

219%

$10.78

2.18%

$7.3

2.98%

2.65%

2.67%

2.33%

0.40%

248%

246%

$10.71

0.01%

$2.4

3.59%

3.59%

3.08%

3.08%

0.57%

201%

178%

$10.90

3.02%

$2.8

4.08%

3.82%

3.35%

3.08%

(2.16)%

204%

204%

$10.58

6.23%

$3.0

4.07%

3.87%

3.29%

3.08%

(2.24)%

296%

308%

$10.03

0.96%

$4.7

3.82%

3.67%

3.23%

3.08%

(0.98)%

230%

219%

$10.20

1.39%

$7.7

3.71%

3.39%

3.40%

3.09%

(0.33)%

248%

246%

$11.68

1.13%

$0.1

2.64%

2.33%

2.19%

1.87%

1.27%

201%

178%

$11.88

4.40%

$4.0

2.86%

2.59%

2.14%

1.87%

(1.00)%

204%

204%

$11.41

7.50%

$3.6

2.87%

2.66%

2.07%

1.87%

(1.27)%

296%

308%

$10.81

2.10%

$1.6

2.59%

2.45%

2.01%

1.87%

0.07%

230%

219%

$10.98

2.64%

$1.4

2.55%

2.21%

2.22%

1.88%

0.84%

248%

246%

$11.82

2.53%

$2.4

2.31%

2.31%

0.60%

0.61%

3.07%

201%

178%

$11.97

7.16%*

$2.2

2.99%**

2.66%**

1.29%**

0.96%**

(0.12)%**

204%*

ØØ

204%*

ØØ

53

Notes

to

Consolidated

Financial

Highlights

Absolute

Return

Multi-Manager

Fund

C

@

Calculated

based

on

the

average

number

of

shares

outstanding

during

each

fiscal

period.

†

Total

return

based

on

per

share

NAV

reflects

the

effects

of

changes

in

NAV

on

the

performance

of

the

Fund

during

each

fiscal

period.

Returns

assume

income

dividends

and

other

distributions,

if

any,

were

reinvested,

but

do

not

reflect

the

effect

of

sales

charges.

Results

represent

past

performance

and

do

not

indicate

future

results.

Current

returns

may

be

lower

or

higher

than

the

performance

data

quoted.

Investment

returns

and

principal

will

fluctuate

and

shares,

when

redeemed,

may

be

worth

more

or

less

than

original

cost.

Total

return

would

have

been

lower

if

Management

had

not

reimbursed

and/

or

waived

certain

expenses.

Total

return

would

have

been

higher

if

Management

had

not

recouped

previously

reimbursed

and/or

waived

expenses.

d

The

class

action

proceeds

listed

in

Note

A

of

the

Notes

to

Consolidated

Financial

Statements

had

no

impact

on

the

Fund's

total

return

for

the

year

ended

October

31,

2023.

Had

the

Fund

not

received

class

action

proceeds

in

2021,

the

total

returns

based

on

per

share

NAV

for

the

year

ended

October

31,

2021

would

have

been:

Institutional

Class

6.84%

Class

A

6.59%

Class

C

5.63%

Class

R6

7.13%

The

class

action

proceeds

received

in

2022,

2020,

2019,

and

2018

had

no

impact

on

the

Fund's

total

returns

for

the

years

ended

October

31,

2022,

2020,

2019,

and

2018.

#

Represents

the

annualized

ratios

of

net

expenses

to

average

daily

net

assets

if

Management

had

not

reimbursed

certain

expenses

and/or

waived

a

portion

of

the

investment

management

fee.

*

Not

annualized.

**

Annualized.

^

The

date

investment

operations

commenced.

54

Institutional

Class

Class

A

Class

C

Class

R6

Class

E

Including

dividend

and

interest

expense

relating

to

short

sales

–%

–%

–%

–%

–%

Year

Ended

October

31,

2023

1.97%

2.33%

3.08%

2.19%

0.60%

Year

Ended

October

31,

2022

2.24%

2.58%

3.35%

2.14%

1.29%

(a)

Year

Ended

October

31,

2021

2.17%

2.54%

3.29%

2.07%

–%

Year

Ended

October

31,

2020

2.12%

2.47%

3.23%

2.01%

–%

Year

Ended

October

31,

2019

2.30%

2.67%

3.40%

2.22%

–%

Excluding

dividend

and

interest

expense

relating

to

short

sales

Year

Ended

October

31,

2023

1.97%

2.33%

3.08%

1.87%

0.61%

Year

Ended

October

31,

2022

1.98%

2.31%

3.08%

1.87%

0.96%

(a)

Year

Ended

October

31,

2021

1.97%

2.33%

3.08%

1.87%

–%

Year

Ended

October

31,

2020

1.97%

2.33%

3.08%

1.87%

–%

Year

Ended

October

31,

2019

1.98%

2.33%

3.09%

1.88%

–%

(a)

Period

from

January

11,

2022

(Commencement

of

Operations)

to

October

31,

2022.

Ø

After

reimbursement

of

expenses

and/or

waiver

of

a

portion

of

the

investment

management

fee

by

Management.

The

Fund

is

required

to

calculate

an

expense

ratio

without

taking

into

consideration

any

expense

reductions

related

to

expense

offset

arrangements

(see

Note

A

in

the

Notes

to

Consolidated

Financial

Statements).

Had

the

Fund

not

received

expense

reductions

related

to

expense

offset

arrangements,

the

annualized

ratios

of

net

expenses

to

average

daily

net

assets

would

have

been:

ØØ

Portfolio

turnover

is

calculated

at

the

Fund

level.

Percentage

indicated

was

calculated

for

the

year

ended

October

31,

2022

for

the

Fund.

55

Report

of

Independent

Registered

Public

Accounting

Firm

To

the

Shareholders

and

Board

of

Trustees

of

Neuberger

Berman

Absolute

Return

Multi-Manager

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

consolidated

statement

of

assets

and

liabilities

of

Neuberger

Berman

Absolute

Return

Multi-Manager

Fund

(the

“Fund”)

(one

of

the

series

constituting

Neuberger

Berman

Alternative

Funds

(the

“Trust”)),

including

the

consolidated

schedule

of

investments,

as

of

October

31,

2023

and

the

related

consolidated

statement

of

operations

for

the

year

then

ended,

the

consolidated

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

then

ended,

the

consolidated

financial

highlights

for

each

of

the

five

years

in

the

period

then

ended

and

the

related

notes

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

consolidated

financial

position

of

the

Fund

(one

of

the

series

constituting

Neuberger

Berman

Alternative

Funds)

at

October

31,

2023,

the

consolidated

results

of

its

operations

for

the

year

ended,

the

consolidated

changes

in

net

assets

for

each

of

the

two

years

in

the

period

then

ended

and

its

consolidated

financial

highlights

for

each

of

the

five

years

in

the

period

then

ended,

in

conformity

with

U.S.

generally

accepted

accounting

principles.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Trust’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(“PCAOB”)

and

are

required

to

be

independent

with

respect

to

the

Trust

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

The

Trust

is

not

required

to

have,

nor

were

we

engaged

to

perform,

an

audit

of

the

Trust’s

internal

control

over

financial

reporting.

As

part

of

our

audits,

we

are

required

to

obtain

an

understanding

of

internal

control

over

financial

reporting,

but

not

for

the

purpose

of

expressing

an

opinion

on

the

effectiveness

of

the

Trust’s

internal

control

over

financial

reporting.

Accordingly,

we

express

no

such

opinion.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

October

31,

2023,

by

correspondence

with

the

custodian,

brokers

and

others;

when

replies

were

not

received

from

brokers

and

others,

we

performed

other

auditing

procedures.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

We

have

served

as

the

auditor

of

one

or

more

Neuberger

Berman

investment

companies

since

1954.

Boston,

Massachusetts

December

22,

2023

56

Directory

Investment

Manager

and

Administrator

Neuberger

Berman

Investment

Advisers

LLC

1290

Avenue

of

the

Americas

New

York,

NY

10104-0002

Shareholder

Services

800.877.9700

or

212.476.8800

Intermediary

Client

Services

800.366.6264

Distributor

Neuberger

Berman

BD

LLC

1290

Avenue

of

the

Americas

New

York,

NY

10104-0002

Shareholder

Services

800.877.9700

or

212.476.8800

Intermediary

Client

Services

800.366.6264

Subadvisers

BH-DG

Systematic

Trading

LLP

55

Baker

Street

London

W1U

7EU,

United

Kingdom

Crabel

Capital

Management,

LLC*

1999

Avenue

of

the

Stars

Suite

2550

Los

Angeles,

CA

90067

GAMCO

Asset

Management

Inc.

One

Corporate

Center

Rye,

NY

10580

P/E

Global,

LLC

75

State

Street,

31st

Floor

Boston,

MA

02109

Portland

Hill

Asset

Management

Limited

21

Knightsbridge

London

SW1X7LY,

United

Kingdom

Custodian

JPMorgan

Chase

&

Co.

4

Chase

Metrotech

Center

Brooklyn,

NY

11245

Shareholder

Servicing

Agent

SS&C

Global

Investor

&

Distribution

Solutions,

Inc.

430

West

7th

Street,

Suite

219189

Kansas

City,

MO

64105-1407

For

Institutional

Class

Shareholders

address

correspondence

to:

Neuberger

Berman

Funds

PO

Box

219189

Kansas

City,

MO

64121-9189

Intermediary

Client

Services

800.366.6264

For

Class

A,

Class

C

and

Class

R6

Shareholders:

Please

contact

your

investment

provider

Legal

Counsel

K&L

Gates

LLP

1601

K

Street,

NW

Washington,

DC

20006-1600

Independent

Registered

Public

Accounting

Firm

Ernst

&

Young

LLP

200

Clarendon

Street

Boston,

MA

02116

*

Please

refer

to

Note

G

-

Subsequent

Event

for

more

information

57

Trustees

and

Officers

The

following

tables

set

forth

information

concerning

the

Trustees

and

Officers

of

the

Fund.

All

persons

named

as

Trustees

and

Officers

also

serve

in

similar

capacities

for

other

funds

administered

or

managed

by

NBIA.

The

Fund’s

Statement

of

Additional

Information

includes

additional

information

about

the

Trustees

as

of

the

time

of

the

Fund’s

most

recent

public

offering

and

is

available

upon

request,

without

charge,

by

calling

(800)

877-9700.

Information

about

the

Board

of

Trustees

Name,

(Year

of

Birth),

and

Address

(1)

Position(s)

and

Length

of

Time

Served

(2)

Principal

Occupation(s)

(3)

Number

of

Funds

in

Fund

Complex

Overseen

by

Fund

Trustee

Other

Directorships

Held

Outside

Fund

Complex

by

Fund

Trustee

(3)

Independent

Fund

Trustees

Michael

J.

Cosgrove

(1949)

Trustee

since

2015

President,

Carragh

Consulting

USA,

since

2014;

formerly,

Executive,

General

Electric

Company,

1970

to

2014,

including

President,

Mutual

Funds

and

Global

Investment

Programs,

GE

Asset

Management,

2011

to

2014,

President

and

Chief

Executive

Officer,

Mutual

Funds

and

Intermediary

Business,

GE

Asset

Management,

2007

to

2011,

President,

Institutional

Sales

and

Marketing,

GE

Asset

Management,

1998

to

2007,

and

Chief

Financial

Officer,

GE

Asset

Management,

and

Deputy

Treasurer,

GE

Company,

1988

to

1993.

47

Member

of

Advisory

Board,

Burke

Neurological

Institute,

since

2021;

Parish

Councilor,

St.

Pius

X,

since

2021;

formerly,

Director,

America

Press,

Inc.

(not-for-profit

Jesuit

publisher),

2015

to

2021;

formerly,

Director,

Fordham

University,

2001

to

2018;

formerly,

Director,

The

Gabelli

Go

Anywhere

Trust,

June

2015

to

June

2016;

formerly,

Director,

Skin

Cancer

Foundation

(not-

for-profit),

2006

to

2015;

formerly,

Director,

GE

Investments

Funds,

Inc.,

1997

to

2014;

formerly,

Trustee,

GE

Institutional

Funds,

1997

to

2014;

formerly,

Director,

GE

Asset

Management,

1988

to

2014;

formerly,

Director,

Elfun

Trusts,

1988

to

2014;

formerly,

Trustee,

GE

Pension

&

Benefit

Plans,

1988

to

2014;

formerly,

Member

of

Board

of

Governors,

Investment

Company

Institute.

58

Name,

(Year

of

Birth),

and

Address

(1)

Position(s)

and

Length

of

Time

Served

(2)

Principal

Occupation(s)

(3)

Number

of

Funds

in

Fund

Complex

Overseen

by

Fund

Trustee

Other

Directorships

Held

Outside

Fund

Complex

by

Fund

Trustee

(3)

Marc

Gary

(1952)

Trustee

since

2015

Executive

Vice

Chancellor

Emeritus,

The

Jewish

Theological

Seminary,

since

2020;

formerly,

Executive

Vice

Chancellor

and

Chief

Operating

Officer,

The

Jewish

Theological

Seminary,

2012

to

2020;

formerly,

Executive

Vice

President

and

General

Counsel,

Fidelity

Investments,

2007

to

2012;formerly,

Executive

Vice

President

and

General

Counsel,

BellSouth

Corporation,

2004

to

2007;

formerly,

Vice

President

and

Associate

General

Counsel,

BellSouth

Corporation,

2000

to

2004;

formerly,

Associate,

Partner,

and

National

Litigation

Practice

Co-Chair,

Mayer,

Brown

LLP,

1981

to

2000;

formerly,

Associate

Independent

Counsel,

Office

of

Independent

Counsel,

1990

to

1992.

47

Chair

and

Director,

USCJ

Supporting

Foundation,

since

2021;

Director,

UJA

Federation

of

Greater

New

York,

since

2019;

Trustee,

The

Jewish

Theological

Seminary,

since

2015;

Director,

Lawyers

Committee

for

Civil

Rights

Under

Law

(not-for-profit),

since

2005;

formerly,

Director,

Legility,

Inc.

(privately

held

for-profit

company),

2012

to

2021;

formerly,

Director,

Equal

Justice

Works

(not-for-profit),

2005

to

2014;

formerly,

Director,

Corporate

Counsel

Institute,

Georgetown

University

Law

Center,

2007

to

2012;

formerly,

Director,

Greater

Boston

Legal

Services

(not-for-profit),

2007

to

2012.

59

Name,

(Year

of

Birth),

and

Address

(1)

Position(s)

and

Length

of

Time

Served

(2)

Principal

Occupation(s)

(3)

Number

of

Funds

in

Fund

Complex

Overseen

by

Fund

Trustee

Other

Directorships

Held

Outside

Fund

Complex

by

Fund

Trustee

(3)

Martha

C.

Goss

(1949)

Trustee

since

2007

Formerly,

President,

Woodhill

Enterprises

Inc./Chase

Hollow

Associates

LLC

(personal

investment

vehicle),

2006

to

2020;

formerly,

Consultant,

Resources

Global

Professionals

(temporary

staffing),

2002

to

2006;

formerly,

Chief

Financial

Officer,

Booz-Allen

&

Hamilton,

Inc.,

1995

to

1999;

formerly,

Enterprise

Risk

Officer,

Prudential

Insurance,

1994

to

1995;

formerly,

President,

Prudential

Asset

Management

Company,

1992

to

1994;

formerly,

President,

Prudential

Power

Funding

(investments

in

electric

and

gas

utilities

and

alternative

energy

projects),

1989

to

1992;

formerly,

Treasurer,

Prudential

Insurance

Company,

1983

to

1989.

47

Director,

American

Water

(water

utility),

since

2003;

Director,

Allianz

Life

of

New

York

(insurance),

since

2005;

formerly,

Director,

Berger

Group

Holdings,

Inc.

(engineering

consulting

firm),

2013

to

2018;

formerly,

Director,

Financial

Women’s

Association

of

New

York

(not-for-profit

association),

1987

to

1996,

and

2003

to

2019;

Trustee

Emerita,

Brown

University,

since

1998;

Director,

Museum

of

American

Finance

(not-for-profit),

since

2013;

formerly,

Non-Executive

Chair

and

Director,

Channel

Reinsurance

(financial

guaranty

reinsurance),

2006

to

2010;

formerly,

Director,

Ocwen

Financial

Corporation

(mortgage

servicing),

2005

to

2010;

formerly,

Director,

Claire’s

Stores,

Inc.

(retailer),

2005

to

2007;

formerly,

Director,

Parsons

Brinckerhoff

Inc.

(engineering

consulting

firm),

2007

to

2010;

formerly,

Director,

Bank

Leumi

(commercial

bank),

2005

to

2007;

formerly,

Advisory

Board

Member,

Attensity

(software

developer),

2005

to

2007;

formerly,

Director,

Foster

Wheeler

Manufacturing,

1994

to

2004;

formerly,

Director,

Dexter

Corp.

(Manufacturer

of

Non-

Wovens,

Plastics,

and

Medical

Supplies),

1992

to

2001.

60

Name,

(Year

of

Birth),

and

Address

(1)

Position(s)

and

Length

of

Time

Served

(2)

Principal

Occupation(s)

(3)

Number

of

Funds

in

Fund

Complex

Overseen

by

Fund

Trustee

Other

Directorships

Held

Outside

Fund

Complex

by

Fund

Trustee

(3)

Ami

Kaplan

(1960)

Trustee

since

2023

Formerly,

Partner,

Deloitte

LLP,

1982

to

2023,

including

Vice

Chair,

2017

to

2020;

formerly,

President

and

Board

Chair,

Women’s

Forum

of

New

York,

2014

to

2016.

47

None.

Michael

M.

Knetter

(1960)

Trustee

since

2007

President

and

Chief

Executive

Officer,

University

of

Wisconsin

Foundation,

since

2010;

formerly,

Dean,

School

of

Business,

University

of

Wisconsin

-

Madison;

formerly,

Professor

of

International

Economics

and

Associate

Dean,

Amos

Tuck

School

of

Business

-

Dartmouth

College,

1998

to

2002.

47

Director,

1WS

Credit

Income

Fund,

since

2018;

Board

Member,

American

Family

Insurance

(a

mutual

company,

not

publicly

traded),

since

March

2009;

formerly,

Trustee,

Northwestern

Mutual

Series

Fund,

Inc.,

2007

to

2011;

formerly,

Director,

Wausau

Paper,

2005

to

2011;

formerly,

Director,

Great

Wolf

Resorts,

2004

to

2009.

Deborah

C.

McLean

(1954)

Trustee

since

2015

Member,

Circle

Financial

Group

(private

wealth

management

membership

practice),

since

2011;

Managing

Director,

Golden

Seeds

LLC

(an

angel

investing

group),

since

2009;

Adjunct

Professor

(Corporate

Finance),

Columbia

University

School

of

International

and

Public

Affairs,

since

2008;

formerly,

Visiting

Assistant

Professor,

Fairfield

University,

Dolan

School

of

Business,

Fall

2007;

formerly,

Adjunct

Associate

Professor

of

Finance,

Richmond,

The

American

International

University

in

London,

1999

to

2007.

47

Board

Member,

The

Maritime

Aquarium

at

Norwalk,

since

2020;

Board

Member,

Norwalk

Community

College

Foundation,

since

2014;

Dean’s

Advisory

Council,

Radcliffe

Institute

for

Advanced

Study,

since

2014;

formerly,

Director

and

Treasurer,

At

Home

in

Darien

(not-for-profit),

2012

to

2014;

formerly,

Director,

National

Executive

Service

Corps

(not-for-profit),

2012

to

2013;

formerly,

Trustee,

Richmond,

The

American

International

University

in

London,

1999

to

2013.

61

Name,

(Year

of

Birth),

and

Address

(1)

Position(s)

and

Length

of

Time

Served

(2)

Principal

Occupation(s)

(3)

Number

of

Funds

in

Fund

Complex

Overseen

by

Fund

Trustee

Other

Directorships

Held

Outside

Fund

Complex

by

Fund

Trustee

(3)

George

W.

Morriss

(1947)

Trustee

since

2007

Formerly,

Adjunct

Professor,

Columbia

University

School

of

International

and

Public

Affairs,

2012

to

2018;

formerly,

Executive

Vice

President

and

Chief

Financial

Officer,

People’s

United

Bank,

Connecticut

(a

financial

services

company),

1991

to

2001.

47

Director,

1WS

Credit

Income

Fund;

Chair,

Audit

Committee,

since

2018;

Director

and

Chair,

Thrivent

Church

Loan

and

Income

Fund,

since

2018;

formerly,

Trustee,

Steben

Alternative

Investment

Funds,

Steben

Select

Multi-Strategy

Fund,

and

Steben

Select

Multi-

Strategy

Master

Fund,

2013

to

2017;

formerly,

Treasurer,

National

Association

of

Corporate

Directors,

Connecticut

Chapter,

2011

to

2015;

formerly,

Manager,

Larch

Lane

Multi-Strategy

Fund

complex

(which

consisted

of

three

funds),

2006

to

2011;

formerly,

Member,

NASDAQ

Issuers’

Affairs

Committee,

1995

to

2003.

Tom

D.

Seip

(1950)

Trustee

since

2000;

Chairman

of

the

Board

since

2008;

formerly,

Lead

Independent

Trustee

from

2006

to

2008

Formerly,

Managing

Member,

Ridgefield

Farm

LLC

(a

private

investment

vehicle),

2004

to

2016;

formerly,

President

and

CEO,

Westaff,

Inc.

(temporary

staffing),

May

2001

to

January

2002;

formerly,

Senior

Executive,

The

Charles

Schwab

Corporation,

1983

to

1998,

including

Chief

Executive

Officer,

Charles

Schwab

Investment

Management,

Inc.;

Trustee,

Schwab

Family

of

Funds

and

Schwab

Investments,

1997

to

1998;

and

Executive

Vice

President-Retail

Brokerage,

Charles

Schwab

&

Co.,

Inc.,

1994

to

1997.

47

Trustee,

University

of

Maryland,

Shore

Regional

Health

System,

since

2020;

formerly,

Director,

H&R

Block,

Inc.

(tax

services

company),

2001

to

2018;

formerly,

Director,

Talbot

Hospice

Inc.,

2013

to

2016;

formerly,

Chairman,

Governance

and

Nominating

Committee,

H&R

Block,

Inc.,

2011

to

2015;

formerly,

Chairman,

Compensation

Committee,

H&R

Block,

Inc.,

2006

to

2010;

formerly,

Director,

Forward

Management,

Inc.

(asset

management

company),

1999

to

2006.

Franklyn

E.

Smith

(1961)

Trustee

since

2023

Formerly,

Partner,

PricewaterhouseCoopers

LLP,

1989

to

2021.

47

Director,

Zurich

American

Insurance

Company,

since

2023.

62

Name,

(Year

of

Birth),

and

Address

(1)

Position(s)

and

Length

of

Time

Served

(2)

Principal

Occupation(s)

(3)

Number

of

Funds

in

Fund

Complex

Overseen

by

Fund

Trustee

Other

Directorships

Held

Outside

Fund

Complex

by

Fund

Trustee

(3)

James

G.

Stavridis

(1955)

Trustee

since

2015

Vice

Chairman

Global

Affairs,

The

Carlyle

Group,

since

2018;

Commentator,

NBC

News,

since

2015;

formerly,

Dean,

Fletcher

School

of

Law

and

Diplomacy,

Tufts

University,

2013

to

2018;

formerly,

Admiral,

United

States

Navy,

1976

to

2013,

including

Supreme

Allied

Commander,

NATO

and

Commander,

European

Command,

2009

to

2013,

and

Commander,

United

States

Southern

Command,

2006

to

2009.

47

Director,

Fortinet

(cybersecurity),

since

2021;

Director,

Ankura,

since

2020;

Director,

Vigor

Shipyard,

since

2019;

Director,

Rockefeller

Foundation,

since

2018;

Director,

American

Water

(water

utility),

since

2018;

Director,

NFP

Corp.

(insurance

broker

and

consultant),

since

2017;

Director,

Onassis

Foundation,

since

2014;

Director,

Michael

Baker

International

(construction)

since

2014;

Director,

Vertical

Knowledge,

LLC,

since

2013;

formerly,

Director,

U.S.

Naval

Institute,

2014

to

2019;

formerly,

Director,

Navy

Federal

Credit

Union,

2000

to

2002;

formerly,

Director,

BMC

Software

Federal,

LLC,

2014

to

2019.

63

(1)

The

business

address

of

each

listed

person

is

1290

Avenue

of

the

Americas,

New

York,

NY

10104.

(2)

Pursuant

to

the

Trust’s

Amended

and

Restated

Trust

Instrument

(“Trust

Instrument”),

subject

to

any

limitations

on

the

term

of

service

imposed

by

the

By-Laws

or

any

retirement

policy

adopted

by

the

Fund

Trustees,

each

Fund

Trustee

shall

hold

office

for

life

or

until

his

or

her

successor

is

elected

or

the

Trust

terminates;

except

that

(a)

any

Fund

Trustee

may

resign

by

delivering

a

written

resignation;

(b)

any

Fund

Trustee

may

be

removed

with

or

without

cause

at

any

time

by

a

written

instrument

signed

by

at

least

two-thirds

of

the

other

Fund

Trustees;

(c)

any

Fund

Trustee

who

requests

to

be

retired,

or

who

has

become

Name,

(Year

of

Birth),

and

Address

(1)

Position(s)

and

Length

of

Time

Served

(2)

Principal

Occupation(s)

(3)

Number

of

Funds

in

Fund

Complex

Overseen

by

Fund

Trustee

Other

Directorships

Held

Outside

Fund

Complex

by

Fund

Trustee

(3)

Fund

Trustees

who

are

“Interested

Persons”

Joseph

V.

Amato*

(1962)

Chief

Executive

Officer

and

President

since

2018

and

Trustee

since

2009

President

and

Director,

Neuberger

Berman

Group

LLC,

since

2009;

President

and

Chief

Executive

Officer,

Neuberger

Berman

BD

LLC

and

Neuberger

Berman

Holdings

LLC

(including

its

predecessor,

Neuberger

Berman

Inc.),

since

2007;

Chief

Investment

Officer

(Equities)

and

President

(Equities),

NBIA

(formerly,

Neuberger

Berman

Fixed

Income

LLC

and

including

predecessor

entities),

since

2007,

and

Board

Member

of

NBIA

since

2006;

formerly,

Global

Head

of

Asset

Management

of

Lehman

Brothers

Holdings

Inc.’s

(“LBHI”)

Investment

Management

Division,

2006

to

2009;

formerly,

member

of

LBHI’s

Investment

Management

Division’s

Executive

Management

Committee,

2006

to

2009;

formerly,

Managing

Director,

Lehman

Brothers

Inc.

(“LBI”),

2006

to

2008;

formerly,

Chief

Recruiting

and

Development

Officer,

LBI,

2005

to

2006;

formerly,

Global

Head

of

LBI’s

Equity

Sales

and

a

Member

of

its

Equities

Division

Executive

Committee,

2003

to

2005;

President

and

Chief

Executive

Officer,

twelve

registered

investment

companies

for

which

NBIA

acts

as

investment

manager

and/or

administrator.

47

Member

of

Board

of

Advisors,

McDonough

School

of

Business,

Georgetown

University,

since

2001;

Member

of

New

York

City

Board

of

Advisors,

Teach

for

America,

since

2005;

Trustee,

Montclair

Kimberley

Academy

(private

school),

since

2007;

Member

of

Board

of

Regents,

Georgetown

University,

since

2013.

64

unable

to

serve,

may

be

retired

by

a

written

instrument

signed

by

a

majority

of

the

other

Fund

Trustees;

and

(d)

any

Fund

Trustee

may

be

removed

at

any

shareholder

meeting

by

a

vote

of

at

least

two-thirds

of

the

outstanding

shares.

(3)

Except

as

otherwise

indicated,

each

individual

has

held

the

positions

shown

during

at

least

the

last

five

years. 

*  

Indicates

a

Fund

Trustee

who

is

an

“interested

person”

within

the

meaning

of

the

1940

Act.

Mr.

Amato

is

an

interested

person

of

the

Trust

by

virtue

of

the

fact

that

he

is

an

officer

of

NBIA

and/or

its

affiliates.

65

Information

about

the

Officers

of

the

Trust

Name,

(Year

of

Birth),

and

Address

(1)

Position(s)

and

Length

of

Time

Served

(2)

Principal

Occupation(s)

(3)

Claudia

A.

Brandon

(1956)

Executive

Vice

President

since

2008

and

Secretary

since

inception

Senior

Vice

President,

Neuberger

Berman,

since

2007

and

Employee

since

1999;

Senior

Vice

President,

NBIA,

since

2008

and

Assistant

Secretary

since

2004;

formerly,

Vice

President,

Neuberger

Berman,

2002

to

2006;

formerly,

Vice

President,

Mutual

Fund

Board

Relations,

NBIA,

2000

to

2008;

formerly,

Vice

President,

NBIA,

1986

to

1999

and

Employee,

1984

to

1999;

Executive

Vice

President

and

Secretary,

thirty-three

registered

investment

companies

for

which

NBIA

acts

as

investment

manager

and/or

administrator.

Agnes

Diaz

(1971)

Vice

President

since

2013

Senior

Vice

President,

Neuberger

Berman,

since

2012;

Senior

Vice

President,

NBIA,

since

2012

and

Employee

since

1996;

formerly,

Vice

President,

Neuberger

Berman,

2007

to

2012;

Vice

President,

twelve

registered

investment

companies

for

which

NBIA

acts

as

investment

manager

and/or

administrator.

Anthony

DiBernardo

(1979)

Assistant

Treasurer

since

2011

Senior

Vice

President,

Neuberger

Berman,

since

2014;

Senior

Vice

President,

NBIA,

since

2014,

and

Employee

since

2003;

formerly,

Vice

President,

Neuberger

Berman,

2009

to

2014;

Assistant

Treasurer,

twelve

registered

investment

companies

for

which

NBIA

acts

as

investment

manager

and/or

administrator.

Savonne

L.

Ferguson

(1973)

Chief

Compliance

Officer

since

2018

Senior

Vice

President,

Chief

Compliance

Officer,

Mutual

Funds,

and

Associate

General

Counsel,

NBIA,

since

November

2018;

formerly,

Vice

President,

T.

Rowe

Price

Group,

Inc.,

2018;

Vice

President

and

Senior

Legal

Counsel,

T.

Rowe

Price

Associates,

Inc.,

2014

to

2018;

Vice

President

and

Director

of

Regulatory

Fund

Administration,

PNC

Capital

Advisors,

LLC,

2009

to

2014;

Secretary,

PNC

Funds

and

PNC

Advantage

Funds,

2010

to

2014;

Chief

Compliance

Officer,

thirty-three

registered

investment

companies

for

which

NBIA

acts

as

investment

manager

and/or

administrator.

Corey

A.

Issing

(1978)

Chief

Legal

Officer

since

2016

(only

for

purposes

of

sections

307

and

406

of

the

Sarbanes-Oxley

Act

of

2002)

General

Counsel,

Mutual

Funds,

since

2016

and

Managing

Director,

NBIA,

since

2017;

formerly,

Associate

General

Counsel,

2015

to

2016;

Counsel,

2007

to

2015;

Senior

Vice

President,

2013

to

2016;

Vice

President,

2009

to

2013;

Chief

Legal

Officer

(only

for

purposes

of

sections

307

and

406

of

the

Sarbanes-Oxley

Act

of

2002),

thirty-three

registered

investment

companies

for

which

NBIA

acts

as

investment

manager

and/or

administrator.

Sheila

R.

James

(1965)

Assistant

Secretary

since

inception

Senior

Vice

President,

Neuberger

Berman,

since

2023

and

Employee

since

1999;

Senior

Vice

President,

NBIA,

since

2023;

formerly,

Vice

President,

Neuberger

Berman,

2008

to

2023;

Assistant

Vice

President,

Neuberger

Berman,

2007;

Employee,

NBIA,

1991

to

1999;

Assistant

Secretary,

thirty-

three

registered

investment

companies

for

which

NBIA

acts

as

investment

manager

and/or

administrator.

Brian

Kerrane

(1969)

Chief

Operating

Officer

since

2015

and

Vice

President

since

2008

Managing

Director,

Neuberger

Berman,

since

2013;

Chief

Operating

Officer,

Mutual

Funds,

and

Managing

Director,

NBIA,

since

2015;

formerly,

Senior

Vice

President,

Neuberger

Berman,

2006

to

2014;

Vice

President,

NBIA,

2008

to

2015

and

Employee

since

1991;

Chief

Operating

Officer,

twelve

registered

investment

companies

for

which

NBIA

acts

as

investment

manager

and/or

administrator;

Vice

President,

thirty-three

registered

investment

companies

for

which

NBIA

acts

as

investment

manager

and/or

administrator.

Anthony

Maltese

(1959)

Vice

President

since

2015

Senior

Vice

President,

Neuberger

Berman,

since

2014

and

Employee

since

2000;

Senior

Vice

President,

NBIA,

since

2014;

Vice

President,

twelve

registered

investment

companies

for

which

NBIA

acts

as

investment

manager

and/or

administrator.

66

(1)

The

business

address

of

each

listed

person

is

1290

Avenue

of

the

Americas,

New

York,

NY

10104.

(2)

Pursuant

to

the

By-Laws

of

the

Trust,

each

officer

elected

by

the

Fund

Trustees

shall

hold

office

until

his

or

her

successor

shall

have

been

elected

and

qualified

or

until

his

or

her

earlier

death,

inability

to

serve,

or

resignation.

Officers

serve

at

the

pleasure

of

the

Fund

Trustees

and

may

be

removed

at

any

time

with

or

without

cause.

(3)

Except

as

otherwise

indicated,

each

individual

has

held

the

positions

shown

during

at

least

the

last

five

years.

Name,

(Year

of

Birth),

and

Address

(1)

Position(s)

and

Length

of

Time

Served

(2)

Principal

Occupation(s)

(3)

Josephine

Marone

(1963)

Assistant

Secretary

since

2017

Senior

Paralegal,

Neuberger

Berman,

since

2007

and

Employee

since

2007;

Assistant

Secretary,

thirty-three

registered

investment

companies

for

which

NBIA

acts

as

investment

manager

and/or

administrator.

Owen

F.

McEntee,

Jr.

(1961)

Vice

President

since

2008

Vice

President,

Neuberger

Berman,

since

2006;

Vice

President,

NBIA,

since

2006

and

Employee

since

1992;

Vice

President,

twelve

registered

investment

companies

for

which

NBIA

acts

as

investment

manager

and/or

administrator.

John

M.

McGovern

(1970)

Treasurer

and

Principal

Financial

and

Accounting

Officer

since

inception

Managing

Director,

Neuberger

Berman,

since

2022;

Senior

Vice

President,

Neuberger

Berman,

2007

to

2021;

Senior

Vice

President,

NBIA,

since

2007

and

Employee

since

1993;

formerly,

Vice

President,

Neuberger

Berman,

2004

to

2006;

formerly,

Assistant

Treasurer,

2002

to

2005;

Treasurer

and

Principal

Financial

and

Accounting

Officer,

twelve

registered

investment

companies

for

which

NBIA

acts

as

investment

manager

and/or

administrator.

Frank

Rosato

(1971)

Assistant

Treasurer

since

inception

Vice

President,

Neuberger

Berman,

since

2006;

Vice

President,

NBIA,

since

2006

and

Employee

since

1995;

Assistant

Treasurer,

twelve

registered

investment

companies

for

which

NBIA

acts

as

investment

manager

and/or

administrator.

Daniel

Tracer

(1987)

Anti-Money

Laundering

Compliance

Officer

since

2023

Senior

Vice

President

and

Head

of

Financial

Regulation,

Neuberger

Berman,

since

February

2023;

Assistant

United

States

Attorney,

Southern

District

of

New

York,

2016

to

2023;

Trial

Attorney,

Department

of

Justice

Antitrust

Division,

2012

to

2015;

Senior

Anti-Money

Laundering

Compliance

Officer,

five

registered

investment

companies

for

which

NBIA

acts

as

investment

manager

and/or

administrator.

67

Proxy

Voting

Policies

and

Procedures

A

description

of

the

policies

and

procedures

that

the

Trust

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities

is

available,

without

charge,

by

calling

800-877-9700

(toll-free)

and

on

the

SEC’s

website

at

www.sec.gov.

Information

regarding

how

the

Trust

voted

proxies

relating

to

portfolio

securities

during

the

most

recent

12-month

period

ended

June

30

is

also

available

upon

request,

without

charge,

by

calling

800-877-9700

(toll-free),

on

the

SEC’s

website

at

www.sec.gov,

and

on

Neuberger

Berman’s

website

at

www.nb.com.

Quarterly

Portfolio

Schedule

The

Trust

files

a

complete

schedule

of

portfolio

holdings

for

the

Fund

with

the

SEC

for

the

first

and

third

quarters

of

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

The

Trust’s

Form

N-PORT

is

available

on

the

SEC’s

website

at

www.sec.gov.

The

portfolio

holdings

information

on

Form

N-PORT

is

available

upon

request,

without

charge,

by

calling

800-877-9700

(toll-free).

Liquidity

Risk

Management

Program

Consistent

with

Rule

22e-4

under

the

Investment

Company

Act

of

1940

(the

“Liquidity

Rule”),

as

amended,

the

Fund

has

established

a

liquidity

risk

management

program

(the

“Program”).

The

Program

seeks

to

assess

and

manage

the

Fund’s

liquidity

risk,

which

is

defined

as

the

risk

that

a

Fund

is

unable

to

meet

investor

redemption

requests

without

significantly

diluting

the

remaining

investors’

interests

in

a

Fund.

The

Board

has

approved

the

designation

of

NBIA

Funds’

Liquidity

Committee,

comprised

of

NBIA

employees,

as

the

program

administrator

(the

“Program

Administrator”).

The

Program

Administrator

is

responsible

for

implementing

and

monitoring

the

Program

and

utilizes

NBIA

personnel

to

assess

and

review,

on

an

ongoing

basis,

the

Fund’s

liquidity

risk.

The

Program

includes

a

number

of

elements

that

support

the

management

and

assessment

of

liquidity

risk,

including

an

annual

assessment

of

the

Fund’s

liquidity

risk

factors

and

the

periodic

classification

(or

re-

classification,

as

necessary)

of

the

Fund’s

investments

into

buckets

(highly

liquid,

moderately

liquid,

less

liquid

and

illiquid)

that

reflect

the

Program

Administrator’s

assessment

of

the

investments’

liquidity

under

current

market

conditions,

which

for

the

relevant

period

included,

among

other

factors,

market

volatility

as

a

result

of

geopolitical

tensions

(e.g.,

Russia’s

invasion

of

Ukraine)

and

rising

inflation.

The

Program

Administrator

also

utilizes

information

about

the

Fund’s

investment

strategy,

the

characteristics

of

the

Fund’s

shareholder

base

and

historical

redemption

activity.

The

Program

Administrator

provided

the

Board

with

a

written

report

that

addressed

the

operation

of

the

Program

and

assessed

its

adequacy

and

effectiveness

of

implementation

from

April

1,

2022

through

March

31,

2023.

During

the

period

covered

by

this

report,

the

Program

Administrator

reported

that

the

Program

effectively

assisted

the

Program

Administrator

in

monitoring

whether

a

Fund

maintained

a

level

of

liquidity

appropriate

for

its

shareholder

base

and

historical

redemption

activity.

Notice

to

Shareholders

In

early

2024

you

will

receive

information

to

be

used

in

filing

your

2023

tax

returns,

which

will

include

a

notice

of

the

exact

tax

status

of

all

distributions

paid

to

you

by

the

Fund

during

calendar

year

2023.

Please

consult

your

own

tax

advisor

for

details

as

to

how

this

information

should

be

reflected

on

your

tax

returns.

For

the

fiscal

year

ended

October

31,

2023,

the

Fund

designates

$697,921

and

$370,231

or

up

to

the

maximum

amount

of

such

dividends

allowable

pursuant

to

the

Internal

Revenue

Code,

for

qualified

dividend

income

and

dividends

received

deduction

eligible

for

reduced

tax

rates.

Complete

information

regarding

the

Fund’s

distributions

during

the

calendar

year

2023

will

be

reported

in

conjunction

with

Form

1099-DIV.

68

Board

Consideration

of

the

Management

and

Sub-Advisory

Agreements 

Board

Consideration

of

the

Management

and                                                  

Sub-Advisory

Agreements

On

an

annual

basis,

the

Board

of

Trustees

(the

"Board

or

“Trustees”")

of

Neuberger

Berman

Alternative

Funds

(the

"Trust"),

including

the

Trustees

who

are

not

"interested

persons"

of

the

Trust

or

of

Neuberger

Berman

Investment

Advisers

LLC

("Management")

(including

its

affiliates),

as

such

term

is

defined

under

the

Investment

Company

Act

of

1940,

as

amended

(“1940

Act”),

("Independent

Fund

Trustees"),

considers

whether

to

continue

the

management

agreement

with

Management

(the

"Management

Agreement")

and

the

separate

sub-advisory

agreements

between

Management

and

each

sub-adviser

(each

a

"Sub-Adviser")

with

respect

to

Neuberger

Berman

Absolute

Return

Multi-Manager

Fund

("ARMM"

or

"Fund").

The

Board

considered

the

sub-advisory

agreements

between

Management

and

each

of

the

following

Sub-Advisers:

BH-DG

Systematic

Trading

LLP,

GAMCO

Asset

Management

Inc.,

P/E

Global,

LLC,

and

Portland

Hill

Asset

Management

Limited

(each

a

"Sub-

Advisory

Agreement";

collectively

with

the

Management

Agreement,

the

"Agreements").

Throughout

the

process,

the

Independent

Fund

Trustees

are

advised

by

counsel

that

is

experienced

in

1940

Act

matters

and

that

is

independent

of

Management

("Independent

Counsel").

At

a

meeting

held

on

October

5,

2023

the

Board,

including

the

Independent

Fund

Trustees,

approved

the

continuation

of

the

Agreements

for

the

Fund.

In

reaching

its

determination,

the

Board

considered

all

factors

it

believed

relevant,

including

(i)

the

nature,

extent,

and

quality

of

the

services

provided

to

each

Fund

and

its

shareholders;

(ii)

a

comparison

of

each

Fund’s

performance,

fees

and

expenses

relative

to

various

peers;

(iii)

the

costs

of

the

services

provided

by,

and

the

estimated

profit

or

loss

by

Management

from

its

relationships

with

each

Fund;

(iv)

any

apparent

or

anticipated

economies

of

scale

in

relation

to

the

services

Management

provides

to

each

Fund

and

whether

any

such

economies

of

scale

are

shared

with

Fund

shareholders;

and

(v)

any

“fall-out”

benefits

likely

to

accrue

to

Management

and

its

affiliates

from

their

relationship

with

each

Fund.

In

evaluating

the

Agreements,

the

Board,

including

the

Independent

Fund

Trustees,

reviewed

extensive

materials

provided

by

Management

and

each

Sub-Adviser

in

response

to

questions

submitted

by

the

Independent

Fund

Trustees

and

Independent

Counsel,

which

the

Contract

Review

Committee

annually

considers

and

updates,

and

(for

the

Sub-Advisers)

by

Management.

It

also

met

with

senior

representatives

of

Management

regarding

its

personnel,

operations,

and

profitability

as

they

relate

to

the

Fund.

The

annual

contract

review

extends

over

at

least

two

regular

meetings

of

the

Board

to

ensure

that

Management

and

each

Sub-Adviser

have

time

to

respond

to

any

questions

the

Independent

Fund

Trustees

may

have

on

their

initial

review

of

the

materials

and

that

the

Independent

Fund

Trustees

have

time

to

consider

those

responses.

In

the

limited

instances

where

Management

or

Sub-Advisers

may

not

have

been

able

to

provide

information

in

response

to

certain

questions,

the

Board

conducted

its

evaluation

based

on

information

that

was

provided.

In

such

cases,

the

Board

determined

that

the

omission

of

any

such

information

was

not

material

to

its

considerations.

In

connection

with

its

deliberations,

the

Board

also

considered

the

broad

range

of

information

relevant

to

the

annual

contract

review

that

is

provided

to

the

Board

(including

its

various

standing

committees)

at

meetings

throughout

the

year.

The

Board

also

considered

the

size

and

staffing

of

each

Sub-Adviser,

particularly

the

staffing

of

the

portfolio

management

and

compliance

functions.

The

Board

established

the

Contract

Review

Committee,

which

is

comprised

solely

of

Independent

Fund

Trustees,

to

assist

in

its

evaluation

and

analysis

of

materials

for

the

annual

contract

review.

The

Board

has

also

established

other

committees

that

focus

throughout

the

year

on

specific

areas

relevant

to

the

annual

contract

review,

such

as

Fund

performance

or

compliance

matters,

and

that

are

charged

with

specific

responsibilities

regarding

the

annual

contract

review.

Those

committees

provide

reports

to

the

full

Board,

including

the

members

of

the

Contract

Review

Committee,

which

consider

that

information

as

part

of

the

annual

contract

review

process.

Each

quarter,

the

Ethics

and

Compliance

Committee

received

and

reviewed

a

summary

of

the

quarterly

compliance

questionnaire

completed

by

each

Sub-Adviser

that

was

prepared

by

the

Fund's

Chief

Compliance

Officer.

The

Independent

Fund

Trustees

received

from

Independent

Counsel

memoranda

discussing

the

legal

standards

for

their

consideration

of

the

proposed

continuation

of

the

Agreements.

During

the

course

of

the

year

and

during

their

deliberations

regarding

the

annual

contract

review,

the

Contract

Review

Committee

and

the

Independent

Fund

Trustees

met

with

Independent

Counsel

separately

from

representatives

of

Management

and

the

Sub-

Advisers.

Provided

below

is

a

description

of

the

Board's

contract

approval

process

and

material

factors

that

the

Board

considered

at

its

meetings

regarding

renewals

of

the

Agreements

and

the

compensation

to

be

paid

thereunder.

In

connection

with

its

approval

of

the

continuation

of

the

Agreements,

the

Board

evaluated

the

terms

of

the

69

Agreements,

the

overall

fairness

of

the

Agreements

to

the

Fund,

and

whether

the

Agreements

were

in

the

best

interests

of

the

Fund

and

Fund

shareholders.

The

Board's

determination

to

approve

the

continuation

of

the

Agreements

was

based

on

a

comprehensive

consideration

of

all

information

provided

to

the

Board

throughout

the

year

and

specifically

in

connection

with

the

annual

contract

review.

The

Board

considered

each

of

the

Agreements

separately.

This

description

is

not

intended

to

include

all

of

the

factors

considered

by

the

Board.

The

Board

members

did

not

identify

any

particular

information

or

factor

that

was

all-important

or

controlling,

and

each

Trustee

may

have

attributed

different

weights

to

the

various

factors.

The

Board

focused

on

the

costs

and

benefits

of

the

Agreements

to

the

Fund

and,

through

the

Fund,

its

shareholders.

Nature,

Extent,

and

Quality

of

Services

With

respect

to

the

nature,

extent,

and

quality

of

the

services

provided,

the

Board

considered

the

investment

philosophy

and

decision-making

processes

of,

and

the

qualifications,

experience,

and

capabilities

of,

and

the

resources

available

to,

the

portfolio

management

personnel

of

Management

and

each

Sub-Adviser

who

perform

services

for

the

Fund.

The

Board

noted

that

Management

and

the

Fund

had

obtained

from

the

U.S.

Securities

and

Exchange

Commission

an

exemptive

order

that

permitted

Management

to

add

or

replace

sub-advisers

to

the

Fund

without

a

shareholder

vote,

provided

the

Independent

Fund

Trustees

approve

the

new

sub-adviser

and

certain

other

steps

are

taken.

In

this

context,

the

Board

considered

Management's

responsibilities

for

designing

an

overall

investment

program

for

the

Fund

and

then

identifying

the

sub-advisers

who

will

carry

out

the

different

portions

of

that

program

based

on

Management's

due

diligence

of

those

sub-advisers.

The

Board

noted

that

under

the

multi-manager

arrangement,

Management

is

continually

assessing

the

need

for

new

sub-advisers

and

the

appropriateness

of

potential

candidates

or

changes

to

current

sub-advisers,

and

noted

the

possibility

that

Management

would

in

the

future

have

to

conduct

"due

diligence"

on

additional

sub-advisers.

The

Board

noted

that

Management

is

responsible

for

making

the

investments

for

the

portion

of

the

portfolio

that

it

manages,

allocating

the

Fund's

portfolio

among

the

various

Sub-Advisers

and

itself,

and

determining

when

and

how

to

rebalance

the

allocations

among

the

Sub-Advisers

and

itself

in

the

wake

of

disparate

growth

and

changes

in

the

markets

and

the

broader

economy,

and

making

certain

other

investment

decisions

and

engaging

in

transactions

to

hedge

or

balance

risks

in

the

Sub-Advisers'

portfolios.

The

Board

noted

that

Management

is

also

responsible

for

coordinating

and

managing

the

flow

of

information

and

communications

relating

to

the

Fund

among

the

Sub-

Advisers,

and

coordinating

responses

to

regulatory

agency

inquiries

related

to

the

operations

of

the

Trust.

The

Board

further

noted

that

Management

is

responsible

for

overseeing

the

Sub-Advisers

pursuant

to

the

Agreements

and

related

sub-adviser

oversight

policies

and

procedures

approved

by

the

Board.

Under

these

procedures,

Management

is

responsible

for

overseeing

the

investment

performance

of

the

Sub-Advisers

and

evaluating

the

risk

and

return

of

each

Sub-Adviser’s

portfolio

and

the

Fund

as

a

whole,

in

addition

to

other

significant

oversight

responsibilities.

The

Board

noted

that

Management

is

also

responsible

for

monitoring

compliance

with

the

Fund's

investment

objectives,

policies,

and

restrictions,

as

well

as

compliance

with

applicable

law,

including

implementing

regulations

adopted

by

the

U.S.

Securities

and

Exchange

Commission.

The

Board

noted

that

Management

also

provides

certain

administrative

services,

including

fund

accounting,

compliance,

and

shareholder

support

services.

The

Board

also

considered

the

policies

and

practices

regarding

brokerage,

commissions,

other

trading

costs,

and

allocation

of

portfolio

transactions

of

Management

and

each

of

the

Sub-Advisers

and

noted

that

Management

monitors

the

quality

of

the

execution

services

provided

by

each

Sub-Adviser.

Moreover,

the

Board

considered

Management's

approach

to

potential

conflicts

of

interest

both

generally

and

between

the

Fund's

investments

and

those

of

other

funds

or

accounts

managed

by

Management

or

the

Sub-Advisers.

The

Board

recognized

the

extensive

range

of

services

that

Management

provides

to

the

Fund

beyond

the

investment

management

services

and

Sub-Adviser

oversight.

It

also

noted

Management's

activities

under

its

contractual

obligation

to

oversee

the

Fund's

various

outside

service

providers,

including

its

renegotiation

of

certain

service

providers'

fees

and

its

evaluation

of

service

providers'

infrastructure,

cybersecurity

programs,

compliance

programs,

and

business

continuity

programs,

among

other

matters.

The

Board

noted

Management's

extensive

70

activities

in

selecting

and

overseeing

the

Sub-Advisers,

including

questionnaires,

virtual

site

visits,

analyses

of

performance,

compliance

monitoring,

and

evaluating

third

party

reviews

of

potential

sub-advisers,

and

the

quarterly

and

annual

reports

that

Management

provides

to

the

Board

on

the

Sub-Advisers'

performance

and

compliance.

In

addition,

the

Board

considered

the

scope

and

compliance

history

of

the

compliance

programs

of

Management

and

each

Sub-Adviser,

including

the

Fund's

Chief

Compliance

Officer's

and

Management's

assessment

of

the

compliance

programs

of

the

Sub-Advisers.

The

Board

discussed

that

Management's

Chief

Information

Security

Officer

had

evaluated

the

Sub-Advisers'

responses

on

questions

of

cybersecurity.

The

Board

also

considered

Management's

ongoing

development

of

its

own

infrastructure

and

information

technology

to

support

the

Fund

through,

among

other

things,

cybersecurity,

business

continuity

planning,

and

risk

management.

In

addition,

the

Board

noted

the

positive

compliance

history

of

Management

and

each

Sub-Adviser,

as

no

significant

compliance

problems

were

reported

to

the

Board

with

respect

to

any

of

the

firms.

The

Board

also

considered

whether

there

were

any

pending

lawsuits,

enforcement

proceedings,

or

regulatory

investigations

involving

Management

or

any

Sub-Adviser,

and

reviewed

information

regarding

their

financial

condition,

history

of

operations,

and

any

conflicts

of

interests

in

managing

the

Fund.

The

Board

also

considered

the

general

structure

of

the

portfolio

managers'

compensation

and

whether

this

structure

provides

appropriate

incentives

to

act

in

the

best

interests

of

the

Fund.

The

Board

also

considered

the

ability

of

Management

to

attract

and

retain

qualified

personnel

to

service

the

Fund

and

the

plan

for

succession.

The

Board

considered

that

Management

assumes

significant

ongoing

entrepreneurial

and

business

risks

as

the

investment

adviser

and

sponsor

for

the

Fund,

for

which

Management

is

entitled

to

reasonable

compensation.

The

Trustees

also

considered

that

Management's

responsibilities

include

continual

management

of

investment,

operational,

cybersecurity,

enterprise,

valuation,

liquidity,

litigation,

regulatory,

and

compliance

risks

as

they

relate

to

the

Fund,

and

the

Board

considers

on

a

regular

basis

information

regarding

Management's

processes

for

monitoring

and

managing

risk.

In

addition,

the

Board

also

noted

that

when

Management

launches

a

new

fund

or

share

class,

it

assumes

entrepreneurial

risk

with

respect

to

that

fund

or

share

class,

until

it

maintains

a

certain

level

of

assets,

if

ever,

that

is

profitable

to

Management.

As

in

past

years,

the

Board

also

considered

the

manner

in

which

Management

addressed

various

matters

that

arose

during

the

year,

some

of

them

a

result

of

developments

in

the

broader

fund

industry

or

the

regulations

governing

it.

In

addition,

the

Board

considered

actions

taken

by

Management

and

each

Sub-Adviser

in

response

to

market

conditions

over

the

past

year,

such

as

changes

in

interest

rates

and

the

increase

in

market

volatility

and

considered

the

overall

performance

of

Management

and

each

Sub-Adviser

in

this

context.

Fund

Performance

The

Board

requested

a

report

from

an

outside

consulting

firm

that

specializes

in

the

analysis

of

fund

industry

data

that

compared

the

Fund's

performance,

along

with

its

fees

and

other

expenses,

to

various

peers,

including

a

group

of

industry

peers

(“Expense

Group”)

and

to

a

broader

universe

of

funds

pursuing

generally

similar

strategies

with

the

same

investment

classification

and/or

objective

(“Performance

Universe”).

The

Board

considered

the

Fund's

performance

and

fees

in

light

of

the

limitations

inherent

in

the

methodology

for

constructing

such

a

comparative

group

and

determining

which

investment

companies

should

be

included

in

the

comparative

group,

noting

differences

as

compared

to

certain

fund

industry

ranking

and

rating

systems.

With

respect

to

investment

performance,

the

Board

considered

information

regarding

the

Fund's

short-,

intermediate-

and

long-term

performance,

as

applicable,

net

of

the

Fund's

fees

and

expenses,

on

an

absolute

basis,

relative

to

a

benchmark

index

that

does

not

deduct

the

fees

or

expenses

of

investing,

and

compared

to

the

performance

of

the

Expense

Group

and

Performance

Universe,

each

constructed

by

the

consulting

firm.

The

Board

also

considered

information

regarding

each

Sub-Adviser's

performance.

The

Board

also

reviewed

performance

in

relation

to

certain

measures

of

the

degree

of

investment

risk

undertaken

by

Management’s

portfolio

managers.

The

Performance

Universe

referenced

in

this

section

are

those

identified

by

the

consulting

firm,

as

discussed

above.

In

the

case

of

underperformance

for

any

of

the

periods

reported,

the

Board

considered

the

magnitude

and

duration

of

that

underperformance

relative

to

the

Performance

Universe

and/or

the

benchmark

(e.g.,

the

amount

by

which

the

Fund

underperformed,

including,

for

example,

whether

the

Fund

slightly

underperformed

71

or

significantly

underperformed

its

benchmark).

With

respect

to

performance

quintile

rankings

for

the

Fund

compared

to

its

Performance

Universe,

the

first

quintile

represents

the

highest

(best)

performance

and

the

fifth

quintile

represents

the

lowest

performance.

The

Fund

has

more

than

one

class

of

shares

outstanding

and

information

for

Institutional

Class

has

been

provided

as

identified

below.

The

Board

reviewed

the

expense

structures

of

all

the

other

classes

of

shares

of

the

Fund,

some

of

which

have

higher

fees

and

expenses

that

reflect

their

separate

distribution

and

servicing

arrangements

and

the

differing

needs

of

different

investors.

As

a

proxy

for

the

class

expense

structure,

the

Board

reviewed

the

expenses

of

each

class

for

one

fund

in

the

Trust

in

comparison

to

Expense

Groups

for

those

classes.

The

Board

noted

the

effect

of

higher

expenses

on

the

performance

of

the

other

classes

of

shares.

The

Board

considered

that,

based

on

performance

data

for

the

periods

ended

December

31,

2022

(1)

as

compared

to

its

benchmark,

the

Fund’s

performance

was

higher

for

the

1-,

3-,

5-

and

10-year

periods;

and

(2)

as

compared

to

its

Performance

Universe,

the

Fund's

performance

was

in

the

first

quintile

for

the

1-,

3-,

and

5-year

periods,

and

the

second

quintile

for

the

10-year

period.

The

Board

also

took

into

account

that

the

Fund

showed

a

risk/return

ratio

that

was

better

than

the

median

of

its

Performance

Universe

for

the

3-

and

5-year

periods,

meaning

that

per

unit

of

risk

taken

versus

a

presumed

risk-free

investment,

the

Fund

achieved

a

higher

level

of

return

than

the

median

of

its

Performance

Universe

for

those

same

periods.

The

Board

recognized

that

the

performance

data

reflects

a

snapshot

of

a

period

as

of

a

particular

date

and

that

selecting

a

different

performance

period

could

produce

significantly

different

results.

The

Board

further

acknowledged

that

long-term

performance

could

be

impacted

by

even

one

period

of

significant

outperformance

or

underperformance.

In

this

regard,

the

Board

noted

that

performance,

especially

short-term

performance,

is

only

one

of

the

factors

that

it

deems

relevant

to

its

consideration

of

the

Agreements

and

that,

after

considering

all

relevant

factors,

it

determined

to

approve

the

continuation

of

the

Agreements

notwithstanding

the

Fund's

relative

performance.

Fee

Rates,

Profitability,

and

Fall-out

Benefits

With

respect

to

the

overall

fairness

of

the

Agreements,

the

Board

considered

the

fee

structure

for

the

Fund

under

the

Agreements

as

compared

to

the

Expense

Group

provided

by

the

consulting

firm,

as

discussed

above.

The

Board

reviewed

a

comparison

of

the

Fund's

management

fee

to

the

Expense

Group.

The

Board

noted

that

the

comparative

management

fee

analysis

includes,

in

the

Fund's

management

fee,

the

separate

administrative

fees

paid

to

Management.

However,

the

Board

noted

that

some

funds

in

the

Expense

Group

pay

directly

from

fund

assets

for

certain

services

that

Management

covers

out

of

the

administration

fees

for

the

Funds.

Accordingly,

the

Board

also

considered

the

Fund's

total

expense

ratio

as

compared

with

its

Expense

Group

as

a

way

of

taking

account

of

these

differences.

The

Board

compared

the

Fund's

contractual

and

actual

management

fees

to

the

median

of

the

contractual

and

actual

management

fees,

respectively,

of

the

Fund's

Expense

Group.

(The

actual

management

fees

are

the

contractual

management

fees

reduced

by

any

fee

waivers

or

other

adjustments.

The

information

provided

herein

relating

to

the

Fund's

management

fees

is

for

the

Fund's

Institutional

Class.)

The

Board

also

compared

the

Fund's

total

expenses

to

the

median

of

the

total

expenses

of

the

Fund's

Expense

Group.

With

respect

to

the

quintile

rankings

for

fees

and

total

expenses

(net

of

waivers

or

other

adjustments,

if

any)

for

the

Fund

compared

to

its

Expense

Group,

the

first

quintile

represents

the

lowest

(best)

fees

and/or

total

expenses

and

the

fifth

quintile

represents

the

highest

fees

and/or

total

expenses.

The

Board

also

noted

that

the

overall

expense

ratio

for

each

class

of

the

Fund

is

maintained

through

a

contractual

fee

cap

and/or

expense

reimbursements

by

Management.

The

Board

also

considered

the

extent

to

which

Management

currently

waives

management

fees

and/or

reimburses

the

Fund

for

other

Fund-level

expenses

at

different

rates

for

different

share

classes

and

the

process

for

monitoring

the

use

of

such

waivers

to

guard

against

any

such

waiver

resulting

in

any

cross-subsidization

by

one

share

class

of

another

share

class.

The

Board

considered

that,

as

compared

to

its

Expense

Group,

the

Fund's

contractual

management

fee

ranked

in

the

fourth

quintile,

the

actual

management

fee

net

of

fees

waived

by

Management

ranked

in

the

third

quintile,

and

total

expenses

ranked

in

the

fifth

quintile.

The

Board

discussed

with

Management

the

impact

of

the

Fund’s

small

size

on

its

expenses

and

the

expenses

associated

with

the

Fund’s

strategy,

including

the

selection,

allocation

to,

and

oversight

of

the

unaffiliated

subadvisers.

72

In

concluding

that

the

benefits

accruing

to

Management

and

its

affiliates

by

virtue

of

their

relationship

with

the

Fund

were

reasonable

in

light

of

the

costs

of

providing

the

investment

advisory

and

other

services

and

the

benefits

accruing

to

the

Fund,

the

Board

reviewed

specific

data

as

to

Management's

estimated

loss

on

the

Fund

for

a

recent

period

on

a

pre-tax

basis

without

regard

to

distribution

expenses.

(The

Board

also

reviewed

data

on

Management's

estimated

loss

on

the

Fund

after

distribution

expenses

and

taxes

were

factored

in,

as

indicators

of

the

health

of

the

business

and

the

extent

to

which

Management

is

directing

its

resources

into

the

growth

of

the

business.)

The

Board

considered

the

consistent

cost

allocation

methodology

that

Management

used

in

developing

its

estimated

profitability

figures.

In

addition,

the

Board

engaged

an

independent

forensic

accountant

to

review

the

profitability

methodology

utilized

by

Management

when

preparing

this

information

and

discussed

with

the

consultant

its

conclusion

that

Management's

process

for

calculating

and

reporting

its

estimated

loss

aligned

with

the

consultant’s

guiding

principles

and

industry

practices.

The

Board

further

noted

Management's

representation

that

its

estimate

of

profitability

is

derived

using

methodology

that

is

consistent

with

the

methodology

used

to

assess

and/or

report

measures

of

profitability

elsewhere

at

the

firm.

In

addition,

the

Board

recognized

that

Management's

calculations

regarding

its

costs

may

not

reflect

all

risks,

including

regulatory,

legal,

operational,

cybersecurity,

reputational,

and,

where

appropriate,

entrepreneurial

risks,

associated

with

offering

and

managing

a

mutual

fund

in

the

current

regulatory

and

market

environment.

The

Board

also

monitors

throughout

the

year

the

potential

effect

on

the

profitability

of

Management

resulting

from

changes

in

Sub-Advisers

and/or

their

fees.

The

Board

did

not

give

substantial

emphasis

to

estimated

profitability

data

from

the

Sub-Advisers

because

the

Board

did

not

view

this

data

as

being

a

key

factor

to

its

deliberations

given

the

arm's-length

nature

of

the

relationship

between

Management

and

the

Sub-Advisers

with

respect

to

the

negotiation

of

sub-advisory

fee

rates.

To

test

its

assumption

of

an

arm's-length

fee

rate,

the

Board

requested

from

Management

information

about

any

other

business

relationships

it

has

with

any

of

the

Sub-

Advisers

beyond

retaining

them

to

advise

other

of

Management’s

client

accounts.

In

addition,

the

Board

noted

that

the

Sub-Advisers

may

not

account

for

their

profits

on

an

account-by-account

basis

and

those

that

do

typically

employ

different

methodologies

in

connection

with

these

calculations.

The

Board

also

considered

any

fall-out

(i.e.,

indirect)

benefits

likely

to

accrue

to

Management

or

its

affiliates

from

their

relationship

with

the

Fund.

Information

Regarding

Services

to

Other

Clients

The

Board

also

considered

whether

there

were

other

funds

or

separate

accounts

that

were

advised

or

sub-advised

by

Management

or

its

affiliates

with

investment

objectives,

policies,

and

strategies

that

were

similar

to

those

of

the

Fund.

The

Board

also

considered

the

fees

the

Sub-Advisers

charge

for

products

with

investment

objectives,

policies,

and

strategies

that

were

similar

to

those

of

the

Fund,

if

any.

The

Board

noted

that

in

many

cases,

those

products

were

hedge

funds,

which

typically

charge

fees

substantially

higher

than

mutual

funds.

Economies

of

Scale

The

Board

also

evaluated

apparent

or

anticipated

economies

of

scale

in

relation

to

the

services

Management

provides

to

the

Fund.

The

Board

considered

that

the

Fund's

fee

structure

provides

for

a

reduction

of

payments

resulting

from

the

use

of

breakpoints,

the

size

of

such

breakpoints

in

the

Fund's

advisory

fees,

and

whether

such

breakpoints

are

set

at

appropriate

asset

levels.

The

Board

also

compared

the

breakpoint

structure

to

that

of

the

Expense

Group.

In

addition,

the

Board

considered

the

expense

limitation

and/or

fee

waiver

arrangement

that

reduce

the

Fund's

expenses

at

all

asset

levels

which

can

have

an

effect

similar

to

breakpoints

in

sharing

economies

of

scale

with

shareholders

and

provide

protection

from

an

increase

in

expenses

if

the

Fund's

assets

decline.

The

Board

considered

that

breakpoints

in

a

Sub-Adviser's

fee

schedule

would

inure

to

the

benefit

of

Management,

and

evaluated

that

fact

in

light

of

Management's

profitability

on

the

Fund,

a

subject

on

which

the

Board

receives

quarterly

reports.

The

Board

also

considered

that

Management

has

provided,

at

no

added

cost

to

the

Fund,

certain

additional

services,

including

but

not

limited

to,

services

required

by

new

regulations

or

regulatory

interpretations,

services

impelled

by

changes

in

the

securities

markets

or

the

business

landscape,

and/or

services

requested

by

the

Board.

The

Board

considered

that

this

is

a

way

of

sharing

economies

of

scale

with

the

Fund

and

its

shareholders.

73

Conclusions

In

approving

the

continuation

of

the

Agreements,

the

Board

concluded

that,

in

its

business

judgment,

the

terms

of

each

Agreement

are

fair

and

reasonable

to

the

Fund

and

that

approval

of

the

continuation

of

the

Agreements

is

in

the

best

interests

of

the

Fund

and

its

shareholders.

In

reaching

this

determination,

the

Board

considered

that

Management

and

each

Sub-Adviser

could

be

expected

to

continue

to

provide

a

high

level

of

service

to

the

Fund;

that

the

performance

of

the

Fund

was

satisfactory

over

time,

or,

in

the

case

of

underperformance

by

a

Sub-

Adviser,

that

the

Board

retained

confidence

in

Management's

and

each

Sub-Adviser's

capabilities

to

manage

the

Fund;

that

the

Fund's

fee

structure

appeared

to

the

Board

to

be

reasonable

given

the

nature,

extent,

and

quality

of

services

provided;

and

that

the

benefits

accruing

to

Management

and

its

affiliates

by

virtue

of

their

relationship

with

the

Fund

were

reasonable

in

light

of

the

costs

of

providing

the

investment

advisory

and

other

services

and

the

benefits

accruing

to

the

Fund.

The

Board's

conclusions

may

be

based

in

part

on

its

consideration

of

materials

prepared

in

connection

with

the

approval

or

continuance

of

the

Agreements

in

prior

years

and

on

the

Board's

ongoing

regular

review

of

Fund

performance

and

operations

throughout

the

year,

in

addition

to

material

prepared

specifically

for

the

most

recent

annual

review

of

the

Agreements.

74

(This

page

intentionally

left

blank)

75

(This

page

intentionally

left

blank)

M0257

12/23

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Advisers

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of

the

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New

York,

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10104–0002

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Services:

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Institutional

Services:

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www.nb.com

Statistics

and

projections

in

this

report

are

derived

from

sources

deemed

to

be

reliable

but

cannot

be

regarded

as

a

representation

of

future

results

of

the

Fund.

This

report

is

prepared

for

the

general

information

of

shareholders

and

is

not

an

offer

of

shares

of

the

Fund.

Shares

are

sold

only

through

the

currently

effective

prospectus

which

you

can

obtain

by

calling

877.628.2583.

An

investor

should

consider

carefully

a

Fund’s

investment

objectives,

risks

and

fees

and

expenses,

which

are

described

in

its

prospectus,

before

investing.

 

Neuberger Berman
Alternative Funds 

Institutional Class Shares

Class A Shares

Class C Shares

Class R6 Shares

 

Long Short Fund

U.S. Equity Index PutWrite Strategy Fund

 

Annual Report

October 31, 2023

 

 

Contents

 

President's Letter	1
Portfolio Commentary
Long Short Fund	2
U.S. Equity Index PutWrite Strategy Fund	5
FUND EXPENSE INFORMATION	11
LEGEND	13
SCHEDULE OF INVESTMENTS
Long Short Fund	14
U.S. Equity Index PutWrite Strategy Fund	37
FINANCIAL STATEMENTS	40
NOTES TO FINANCIAL STATEMENTS	45
FINANCIAL HIGHLIGHTS (ALL CLASSES)
Long Short Fund	63
U.S. Equity Index PutWrite Strategy Fund	63
Report of Independent Registered Public Accounting Firm	66
Directory	68
Trustees and Officers	69
Proxy Voting Policies and Procedures	79
Quarterly Portfolio Schedule	79
Liquidity Risk Management Program	79
Board Consideration of the Management Agreements	80
Notice to Shareholders	86

The "Neuberger Berman" name and logo and "Neuberger Berman Investment Advisers LLC" name are registered service marks of Neuberger Berman Group LLC. The individual Fund names in this piece are either service marks or registered service marks of Neuberger Berman Investment Advisers LLC, an affiliate of Neuberger Berman BD LLC, distributor, member FINRA. ©2023 Neuberger Berman BD LLC, distributor. All rights reserved.

President’s Letter

Dear Shareholder,

I am pleased to present this annual shareholder report for Neuberger Berman Alternative Funds covering the fiscal year ended October 31, 2023 (the reporting period).

The global financial markets experienced periods of heightened volatility during the reporting period. Investor sentiment was impacted by a number of factors, including continued high inflation, aggressive monetary policy tightening, a period of unrest in the regional banking industry, wars in Ukraine and the Middle East, and several other geopolitical events. Despite several headwinds, the U.S. economy was resilient and continued to expand. Against this backdrop, equity and bond markets generated mixed results during the reporting period.

With inflation remaining persistent and elevated, the U.S. Federal Reserve Board (Fed) remained steadfast in its attempt to moderate economic growth and orchestrate a "soft landing." The Fed raised rates at 11 meetings from March 2022 through July 2023—bringing the federal funds rate to a range between 5.25%-5.50%, the highest level in 22 years. While the central bank paused from raising rates at its meetings in September and November 2023 (after the reporting period), it left on the table the possibility of additional hikes in the future.

After rising over the first nine months of the reporting period, a portion of equity market gains were given back over the last three months. This turnaround was partially triggered by investors reacting to the possibility of a "higher for longer" interest rate environment. All told, the S&P 500® Index returned 10.14% during the reporting period. Meanwhile, international developed and emerging market equities, as measured by the MSCI EAFE® and MSCI Emerging Markets Indices (Net), returned 14.40% and 10.80%, respectively. Meanwhile, with short- and long-term Treasury yields moving higher the bond market was challenged (yields and bond prices generally move in the opposite direction). For the reporting period, the broad taxable investment-grade bond market, as measured by the Bloomberg U.S. Aggregate Bond Index, returned 0.36%.

Looking ahead, until we have more clarity on the path of the economy versus inflation, we anticipate continued market volatility. In such an environment, we believe the divergence in underlying companies’ operating performance will be ever more apparent going forward. Our constructive long-term view for the market is not without challenges as we move through 2023 and beyond. As always, we continue our efforts to best understand company and portfolio-specific factors as we believe this environment is flush with a confluence of fiscal policy considerations, monetary policy stimulus, public health concerns, geopolitical uncertainty, commodity price volatility, inflation dynamics and sequencing question marks. As market dynamics change, this can cause company market values to dislocate from their long-term potential values, creating a volatile environment with potential opportunities. We highlight these risks because the current environment, as always, necessitates a flexible approach in the complex global world in which we operate.

Thank you for your support and trust. We look forward to continuing to serve your investment needs in the years to come.

Sincerely,

 

Joseph V. Amato
President and CEO
Neuberger Berman Alternative Funds

1

Long Short Fund Commentary (Unaudited)

Neuberger Berman Long Short Fund Institutional Class generated a 9.52% total return for the fiscal year ended October 31, 2023 (the reporting period), outperforming its primary benchmark, the HFRX® Equity Hedge Index (the Index), which returned 2.89% for the same period. (Performance for all share classes is provided in the table immediately following this letter.)

The overall U.S. equity market experienced periods of heightened volatility but generated strong results during the reporting period. A number of factors impacted the market, including elevated and persistent inflation, aggressive rate hikes by the U.S. Federal Reserve Board (Fed), unrest in the regional banking industry, and several geopolitical events. Despite several headwinds, the U.S. economy was resilient and continued to expand. All told, the S&P 500® Index returned 10.14% during the reporting period.

With the increase in market volatility and extreme positioning in the market driven by heightened uncertainty, we modestly increased the Fund’s net exposures. On an absolute basis, the Fund's largest sector weights were in Information Technology, Consumer Discretionary and Financials during the reporting period.

We categorize the Fund’s long investment exposure into three groups: Capital Growth, Total Return and Opportunistic. Capital Growth continues to represent our largest allocation, followed by Total Return and Opportunistic. We continue to take a balanced approach and, on the margin, find Total Return investments to be more attractive relative to the prior reporting period, as late-cycle economic dynamics have emerged. The Fund’s short exposure includes both single name "Fundamental" shorts and "Market" shorts. Market shorts consist primarily of sector and market cap-specific indices to help manage broader portfolio exposures.   During the reporting period, total short exposure increased against the backdrop of macroeconomic uncertainty led by Market shorts.

The Fund’s equity long exposure was additive to performance, while its Fundamental shorts also contributed to performance.

The Fund’s aggregate use of futures, swap and option contracts detracted from performance during the reporting period.

We recognize that while the economy is slowing, it has largely been more resilient than many expected. At the same time, progress has been made by the Fed in the fight against inflation and company earnings on average are coming in above expectations. Yet, commentary around decelerating consumer trends, continued declines in existing home sales and heightened uncertainty around the second half of the year, offer a clear indication that the Fed’s tightening cycle is having a real impact to the broader economy. Furthermore, we enter the end of the year against a backdrop of consumer headwinds, such as slowing real wage growth, a resumption of student loan payments, and pressure from an acceleration in gas prices. Despite this, the Fed has remained steadfast in its commitment to fighting inflation and has shown no indication to date that it will pivot and cut rates this year, a notion we believe equity markets have now largely accepted, with cuts only priced in for mid-2024. As always, we continue our efforts to best understand company and portfolio-specific factors as we believe this environment is flush with a confluence of fiscal policy considerations, monetary policy stimulus, public health concerns, geopolitical uncertainty, commodity price volatility, and inflation dynamics. As market dynamics change, this can cause company market values to dislocate from their long-term potential values, creating a volatile environment with potential opportunities for both long and short investing.

Sincerely,

Charles Kantor and Marc Regenbaum
Portfolio Managers

Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.

The portfolio composition, industries and holdings of the Fund are subject to change without notice.

The opinions expressed are those of the Fund’s portfolio managers. The opinions are as of the date of this report and are subject to change without notice.

2

Long Short Fund (Unaudited)

 

TICKER SYMBOLS
Institutional Class	NLSIX
Class A	NLSAX
Class C	NLSCX

 

PORTFOLIO BY INVESTMENT TYPE
(as a % of Total Net Assets)
	Long	Short
Common Stocks	76.2 %	(14.6 )%
Convertible Bonds	0.3	—
Corporate Bonds	3.4	(0.7 )
Master Limited Partnerships and Limited Partnerships	2.2	—
Preferred Stocks	0.9	—
Warrants	0.1	—
Short-Term Investments	9.6	—
Other Assets Less Liabilities*	22.6	—
Total	115.3 %	(15.3 )%

 

* Includes the impact of the Fund’s open positions in derivatives (other than options purchased), if any.

 

PERFORMANCE HIGHLIGHTS
	Inception Date	Average Annual Total Return Ended 10/31/2023
		1 Year	5 Years	10 Years	Life of Fund
At NAV
Institutional Class	12/29/2011	9.52%	6.81%	5.05%	6.29%
Class A	12/29/2011	9.15%	6.42%	4.67%	5.91%
Class C	12/29/2011	8.34%	5.63%	3.89%	5.12%
With Sales Charge
Class A		2.86%	5.16%	4.05%	5.38%
Class C		7.34%	5.63%	3.89%	5.12%
Index
HFRX® Equity Hedge Index1,2		2.89%	4.11%	2.64%	3.38%
S&P 500® Index1,2		10.14%	11.01%	11.18%	12.92%

The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For current performance data, including current to the most recent month-end, please visit www.nb.com/performance.

The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.  

The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.

Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by NBIA) will decrease the class’s returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.

As stated in the Fund’s most recent prospectus, the total annual operating expense ratios for fiscal year 2022 were 1.69%, 2.06% and 2.81% for Institutional Class, Class A and Class C shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratios for the annual period ended October 31, 2023, can be found in the Financial Highlights section of this report.

Returns shown with a sales charge reflect the deduction of the current maximum initial sales charge of 5.75% for Class A shares and the contingent deferred sales charge (CDSC) for Class C shares. The CDSC for Class C shares is 1.00%, which is reduced to 0% after 1 year. The performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses. Please see the prospectus for more information about sales charge structures, if any, and class expenses for your share class.

3

Long Short Fund (Unaudited)

COMPARISON OF A $1,000,000 INVESTMENT

(000's omitted)

 

This graph shows the change in value of a hypothetical $1,000,000 investment in the Fund over the past 10 fiscal years, or since the Fund’s inception if it has not operated for 10 years. The graph is based on the Institutional Class shares only; the performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses (see Performance Highlights chart on previous page). The result is compared with benchmarks, which include a broad-based market index and may include a more narrowly based index. Market indices have not been reduced to reflect any of the fees and costs of investing. The results shown in the graph reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results.

4

U.S. Equity Index PutWrite Strategy Fund* Commentary (Unaudited)

Neuberger Berman U.S. Equity Index PutWrite Strategy Fund Institutional Class generated a total return of 11.53% for the fiscal year ended October 31, 2023 (the reporting period), outperforming its benchmark, a blend consisting of 50% Cboe S&P 500 One-Week PutWrite Index and 50% Cboe S&P 500 PutWrite Index (collectively, the Index), which posted a 8.62% total return during the same period. (Performance for all share classes is provided in the table immediately following this letter.)

In one of the most obvious 'not if, but when' market scenarios, U.S. economic resilience (i.e., inflation) and the U.S. Federal Reserve Board’s historic target rate increases seem to finally be taking its toll on financial market expectations. Just as the market rally to begin the year seems to have caught investors by surprise, so has the realization that a reversal of the forty-plus year downward trend in 30-year U.S. Treasury yields may stick around longer than previous periods and may ultimately dent the seemingly invincible U.S. consumer. Interest rates continued their charge higher with the 10-Year U.S. Treasury yield rising from around 4% at the start of the reporting period to roughly 5% at the end. Hence, the Bloomberg U.S. Aggregate Bond Index remained essentially flat with a return of 0.36% as eight out of 12 months during the period resulted in losses. Volatility levels remained within expectations with the Cboe S&P 500 Volatility Index (VIX®) averaging around 18.4 for the reporting period which was just shy of the historical average of 19.6. Over the reporting period, VIX is down -7.7 pts with an average 30-day implied volatility premium of 3.8. As we’ve noted in the past, while volatility levels are subdued from what we witnessed as a result of the global pandemic, they are in-line with long-term averages. Importantly, in our view implied volatility premiums are healthy and have been positive in all but one quarter since the first quarter of 2020, indicating that the market is pricing risk effectively. Moreover, coupled with the tailwind of higher rates translating to higher income in the collateral portfolio, we believe VIX in the mid to high teens is likely to result in higher premiums for the options sleeve which has the potential to aid the Fund in delivering attractive risk-adjusted returns and dampening portfolio volatility.

Over the reporting period, the Fund’s put writing strategy was additive to overall portfolio performance. Specifically, the Fund’s S&P 500 PutWrite sleeve delivered a return of roughly 10% versus the Cboe S&P 500 PutWrite Index (PUT) total return of 11.88%. Meanwhile, weekly put writing, as measured by the Cboe S&P 500 One-Week PutWrite (WPUT), rose 5.42%. During the reporting period, the collateral portfolio was also additive to performance as it returned more than 3% versus the ICE BofA 0-3 Month US Treasury Bill Index’s total return of 4.86%. The additional income from the collateral portfolio plus the Fund’s enhanced diversification and active risk management of the options sleeve resulted in outperformance during the reporting period versus the passive put write indices. Higher rates will continue to offer investors more income potential from their investment portfolios which in turn may dampen portfolio volatility levels. At current levels, we are seeing yields of 4.5% to 5.5% with little duration risk (approximately 1 year). When combined with average to above average option premium levels, we believe our strategy can offer very competitive returns versus many other asset classes over the next few years.

During the reporting period, there were no changes to the Fund’s average option notional exposure as it remained consistent with our strategic target of 100% S&P 500® Index.

Despite recent data suggesting that Americans have never been richer with federal data estimating U.S. household wealth reached $154 trillion1, it’s hard to believe that the average American would find their situation consistent with the data. We continue to believe that economic data is becoming increasingly 'skewed' by the wealth gap or obscured by shifting economic dynamics like 'work from home' and out-of-date methodologies that don’t fully account for global e-commerce trends like 'skimpflation', 'shrinkflation’ and the coming 'ai-flation’. Historically, technological advancement and innovation have been considered deflationary, providing more for the same price. However, it seems we may be approaching a period in which inflation is more difficult to fight because there are so many new 'expenses’. Older goods are shrinking while new services and products are 'must haves’ which compete for resources. Add a higher cost-capital and we believe the competition will intensify further fueling the inflationary cycle that is underway. That is not to say inflation will jump higher, but that the

5

U.S. Equity Index PutWrite Strategy Fund* Commentary (Unaudited)

phrase 'higher for longer’ likely applies. As consumers begin to feel the 'squeeze’ of higher rates and higher prices over time, we anticipate savings rates to continue to decline below long-term levels. In turn, we believe that there is a good chance that the U.S. economy may be headed for challenges that the market may not fully appreciate. If consumer behavior trends become reinforced by demographics and prove more persistent than temporary, then it’s difficult to predict how credit markets and private investments will respond. Of course, in our view, that spells higher V-O-L-A-T-I-L-I-T-Y. With rates and volatility levels back to longer-term averages, option strategy return prospects are trending towards historical norms, meaning we believe that hedging is expensive and option premiums and collateral rates favor the collectors.

Sincerely,

Derek Devens and Rory Ewing
Portfolio Managers

*As previously disclosed in a supplement to the Fund's Summary Prospectus, Prospectus and Statement of Additional Information dated July 7, 2023 (the "Supplement"), the Neuberger Berman U.S. Equity Index PutWrite Strategy Fund is currently expected to be reorganized into an exchange-traded fund in January 2024. Class A and C Shares of the Fund were converted into Institutional Class Shares on after the close of business on 9/14/23. Please read the Supplement and information statement on Form N-14, for important information about the expected reorganization.

1 Federal Reserve, Household Balance Sheet Data September 8, 2023.

Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.

The portfolio composition, industries and holdings of the Fund are subject to change without notice.

The opinions expressed are those of the Fund’s portfolio managers. The opinions are as of the date of this report and are subject to change without notice.

6

U.S. Equity Index PutWrite Strategy Fund (Unaudited)

 

TICKER SYMBOLS
Institutional Class	NUPIX
Class R6	NUPRX

 

PORTFOLIO BY INVESTMENT TYPE
(as a % of Total Net Assets)
U.S. Treasury Obligations	96.9 %
Written Option Contracts	(1.5 )
Short-Term Investments	4.5
Other Assets Less Liabilities	0.1 *
Total	100.0 %

 

* Includes the impact of the Fund's open positions in derivatives (other than options purchased), if any.

 

PERFORMANCE HIGHLIGHTS3
	Inception Date	Average Annual Total Return Ended 10/31/2023
		1 Year	5 Years	Life of Fund
At NAV
Institutional Class	09/16/2016	11.53%	6.75%	6.61%
Class R6	09/16/2016	11.62%	6.83%	6.70%
Index
50% Cboe S&P 500 One-Week PutWrite Index / 50% Cboe S&P 500 PutWrite Index1,2		8.62%	3.06%	3.63%
S&P 500® Index1,2		10.14%	11.01%	11.83%

The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For current performance data, including current to the most recent month-end, please visit www.nb.com/performance.

The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.  

The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.

Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by NBIA) will decrease the class’s returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.

As stated in the Fund’s most recent prospectus, the total annual operating expense ratios for fiscal year 2022 were 0.71% and 0.61% for Institutional Class and Class R6 shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratios were 0.66% and 0.56% for Institutional Class and Class R6 shares, respectively, after expense reimbursements and/or fee waivers. The expense ratios for the annual period ended October 31, 2023, can be found in the Financial Highlights section of this report.

7

U.S. Equity Index PutWrite Strategy Fund (Unaudited)

COMPARISON OF A $1,000,000 INVESTMENT

(000's omitted)

 

This graph shows the change in value of a hypothetical $1,000,000 investment in the Fund over the past 10 fiscal years, or since the Fund’s inception if it has not operated for 10 years. The graph is based on the Institutional Class shares only; the performance of the Fund’s share classes will differ primarily due to different sales charge structures and class expenses (see Performance Highlights chart on previous page). The result is compared with benchmarks, which include a broad-based market index and may include a more narrowly based index. Market indices have not been reduced to reflect any of the fees and costs of investing. The results shown in the graph reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results.

8

Endnotes (Unaudited)

 

1	Please see "Glossary of Indices" on page 10 for a description of indices. Please note that individuals cannot invest directly in any index. The HFRX® Equity Hedge Index does take into account fees and expenses, but not the tax consequences, of investing since it is based on the underlying hedge funds’ net returns. The other indices described in this report do not take into account any fees, expenses or tax consequences of investing in the individual securities that they track. Data about the performance of an index are prepared or obtained by Neuberger Berman Investment Advisers LLC and reflect the reinvestment of income dividends and other distributions, if any. The Fund may invest in securities not included in a described index and generally does not invest in all securities included in a described index.
2	The date used to calculate Life of Fund performance for the index is the inception date of the oldest share class.
3	The investments for the Fund are managed by the same portfolio manager(s) who manage(s) one or more other registered funds that have names, investment objectives and investment styles that are similar to those of the Fund. You should be aware that the Fund is likely to differ from those other mutual fund(s) in size, cash flow pattern and tax matters. Accordingly, the holdings and performance of the Fund can be expected to vary from those of the other mutual fund(s).

For more complete information on any of the Neuberger Berman Alternative Funds, call us at (800) 877-9700, or visit our website at www.nb.com.

9

Glossary of Indices (Unaudited)

 

Cboe S&P 500 PutWrite Index:	The index tracks the value of a passive investment strategy, which consists of overlaying S&P 500 (SPX) short put options over a money market account invested in one- and three-months Treasury bills. The SPX puts are struck at-the-money and are sold on a monthly basis.
Cboe S&P 500 One-Week PutWrite Index:	The index is designed to track the performance of a hypothetical strategy that sells an at-the- money (ATM) S&P 500 Index (SPX) put option on a weekly basis. The maturity of the written SPX put option is one week to expiry. The written SPX put option is collateralized by a money market account invested in one-month U.S. Treasury bills. The index rolls on a weekly basis, typically every Friday.
50% Cboe S&P 500 One-Week PutWrite Index/50% Cboe S&P 500 PutWrite Index:	The blended index is composed of 50% Cboe S&P 500 One-Week PutWrite Index (described above) and 50% Cboe S&P 500 PutWrite Index (described above) and is rebalanced monthly.
HFRX® Equity Hedge Index:	The index comprises equity hedge strategies. Equity hedge strategies maintain positions both long and short in primarily equity and equity derivative securities. A wide variety of investment processes can be employed to arrive at an investment decision, including both quantitative and fundamental techniques; strategies can be broadly diversified or narrowly focused on specific sectors and can range broadly in terms of levels of net exposure, leverage employed, holding period, concentrations of market capitalizations and valuation ranges of typical portfolios. Equity hedge managers would typically maintain at least 50%, and may in some cases be substantially entirely invested, in equities, both long and short. Constituent funds are selected from an eligible pool of the more than 7,500 funds worldwide that report to the Hedge Fund Research (HFR) Database. Constituent funds must meet all of the following criteria: report monthly; report performance net of all fees; be U.S. dollar-denominated; be active and accepting new investments; have a minimum 24 months track record; and the fund’s manager must have at least $50 million in assets under management. The index is rebalanced quarterly.
S&P 500® Index:	The index is a float-adjusted market capitalization-weighted index that focuses on the large-cap segment of the U.S. equity market, and includes a significant portion of the total value of the market.

10

Information About Your Fund’s Expenses (Unaudited)

As a Fund shareholder, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds (if applicable); and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees (if applicable), and other Fund expenses. This example is intended to help you understand your ongoing costs (in U.S. dollars) of investing in a Fund and compare these costs with the ongoing costs of investing in other mutual funds.

This table is designed to provide information regarding costs related to your investments. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended October 31, 2023 and held for the entire period. The table illustrates each Fund’s costs in two ways: 

Actual Expenses and Performance:

The first section of the table provides information about actual account values and actual expenses in dollars, based on the Fund’s actual performance during the period indicated. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section of the table under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid over the period.

Hypothetical Example for Comparison Purposes:

The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return at 5% per year before expenses. This return is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund versus other funds. To do so, compare the expenses shown in this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses in the table are meant to highlight your ongoing costs only and do not include any transaction costs, such as sales charges (loads) (if applicable). Therefore, the information under the heading "Hypothetical (5% annual return before expenses)" is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

11

Expense Example (Unaudited)

Neuberger Berman Alternative Funds 

	ACTUAL				HYPOTHETICAL (5% ANNUAL RETURN BEFORE EXPENSES)
	Beginning Account Value 5/1/23	Ending Account Value 10/31/23	Expenses Paid During the Period(1) 5/1/23 – 10/31/23	Expense Ratio	Beginning Account Value 5/1/23	Ending Account Value 10/31/23	Expenses Paid During the Period(2) 5/1/23 – 10/31/23	Expense Ratio
Long Short
Institutional Class	$1,000.00	$1,029.30	$6.29(3)	1.23%	$1,000.00	$1,019.00	$6.26(3)	1.23%
Class A	$1,000.00	$1,027.90	$8.13(3)	1.59%	$1,000.00	$1,017.19	$8.08(3)	1.59%
Class C	$1,000.00	$1,023.70	$11.99(3)	2.35%	$1,000.00	$1,013.36	$11.93(3)	2.35%
U.S. Equity Index PutWrite Strategy
Institutional Class	$1,000.00	$1,020.40	$3.31	0.65%	$1,000.00	$1,021.93	$3.31	0.65%
Class R6	$1,000.00	$1,020.80	$2.80	0.55%	$1,000.00	$1,022.43	$2.80	0.55%

 

(1)	For each class, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown), unless otherwise indicated.
(2)	Hypothetical expenses are equal to the annualized expense ratios for each class, multiplied by the average account value over the period (assuming a 5% annual return), multiplied by 184/365 (to reflect the one-half year period shown).
(3)	Includes expenses of the Fund’s Blocker (See Note A of the Notes to Financial Statements).

12

Legend October 31, 2023 (Unaudited)

Neuberger Berman Alternative Funds 

Benchmarks:
FEDL01	= United States Federal Funds Effective Rate
LIBOR	= London Interbank Offered Rate
OBFR	= United States Overnight Bank Funding Rate
SOFR	= Secured Overnight Financing Rate
Counterparties:
CITI	= Citibank, N.A.
GSI	= Goldman Sachs International
JPM	= JPMorgan Chase Bank N.A.
SSB	= State Street Bank and Trust Company
Index Periods/Payment Frequencies:
1M	= 1 Month
3M	= 3 Months
T	= Termination
Other Abbreviations:
Management or NBIA	= Neuberger Berman Investment Advisers LLC
Currency Abbreviations:
USD	= United States Dollar

13

Consolidated Schedule of Investments Long Short Fund^ October 31, 2023

 

Number of Shares		Value
Long Positions 92.7%
Common Stocks 76.2%
Aerospace & Defense 1.3%
245,678	Airbus SE	$32,939,559
168,643	Boeing Co.	31,505,885 *
75,000	L3Harris Technologies, Inc.	13,455,750
		77,901,194
Banks 1.3%
577,707	JPMorgan Chase & Co.	80,335,935
Beverages 1.8%
3,730,140	Keurig Dr Pepper, Inc.	113,135,146
Biotechnology 0.5%
233,927	AbbVie, Inc.	33,025,814
Broadline Retail 3.0%
1,394,137	Amazon.com, Inc.	185,545,693 *
Capital Markets 3.6%
1,466,976	Brookfield Corp. Class A	42,762,350 (a)
498,280	CME Group, Inc.	106,362,849
196,281	S&P Global, Inc.	68,562,916
		217,688,115
Chemicals 0.5%
370,217	Ashland, Inc.	28,369,729
Commercial Services & Supplies 1.0%
360,817	Waste Management, Inc.	59,293,058
Consumer Staples Distribution & Retail 3.3%
76,409	Costco Wholesale Corp.	42,211,388
900,595	Dollar Tree, Inc.	100,047,099 *
362,818	Walmart, Inc.	59,288,089
		201,546,576
Containers & Packaging 0.8%
281,092	Avery Dennison Corp.	48,929,684
Diversified Consumer Services 0.1%
528,214	European Wax Center, Inc. Class A	7,801,721 *
Electric Utilities 2.3%
1,094,393	FirstEnergy Corp.	38,960,391
1,757,456	NextEra Energy, Inc.	102,459,685
		141,420,076
Electrical Equipment 0.7%
905,549	nVent Electric PLC	43,584,073 (b)
Electronic Equipment, Instruments & Components 1.8%
410,733	Amphenol Corp. Class A	33,084,543
204,159	CDW Corp.	40,913,464

Number of Shares		Value
Electronic Equipment, Instruments & Components – cont'd
292,270	TE Connectivity Ltd.	$34,444,019
		108,442,026
Entertainment 1.0%
150,752	Netflix, Inc.	62,063,091 *
Financial Services 2.7%
207,084	MasterCard, Inc. Class A	77,936,064
1,866,780	Repay Holdings Corp.	11,182,012 *
333,561	Visa, Inc. Class A	78,420,191
		167,538,267
Food Products 0.9%
169,321	Lamb Weston Holdings, Inc.	15,205,026
562,189	Mondelez International, Inc. Class A	37,222,534
		52,427,560
Ground Transportation 2.1%
534,510	Uber Technologies, Inc.	23,133,593 *
510,426	Union Pacific Corp.	105,969,542
		129,103,135
Health Care Equipment & Supplies 0.8%
912,378	Boston Scientific Corp.	46,704,630 *
Health Care Providers & Services 2.8%
73,639	Humana, Inc.	38,564,008
242,161	UnitedHealth Group, Inc.	129,691,745
		168,255,753
Hotels, Restaurants & Leisure 3.1%
710,504	First Watch Restaurant Group, Inc.	11,872,522 *
91,869	Marriott International, Inc. Class A	17,322,818
524,845	McDonald's Corp.	137,598,614
2,137,506	Sweetgreen, Inc. Class A	22,080,437 *
		188,874,391
Household Products 0.5%
207,314	Procter & Gamble Co.	31,103,319
Insurance 1.2%
473,786	Progressive Corp.	74,900,829
Interactive Media & Services 5.8%
1,154,478	Alphabet, Inc. Class A	143,247,630 *
2,024,099	Match Group, Inc.	70,033,825 *
478,728	Meta Platforms, Inc. Class A	144,226,385 *
		357,507,840
IT Services 0.6%
511,562	Okta, Inc.	34,484,394 *

See Notes to Consolidated Financial Statements

14

Consolidated Schedule of Investments Long Short Fund^  (cont’d)

Number of Shares		Value
Life Sciences Tools & Services 0.5%
70,337	Thermo Fisher Scientific, Inc.	$31,283,788
Multi-Utilities 2.4%
2,413,791	CenterPoint Energy, Inc.	64,882,702
1,006,344	WEC Energy Group, Inc.	81,906,338
		146,789,040
Oil, Gas & Consumable Fuels 1.8%
530,710	Chevron Corp.	77,340,368
1,085,485	Enbridge, Inc.	34,778,940
		112,119,308
Personal Care Products 0.8%
2,314,488	Kenvue, Inc.	43,049,477
134,219	Oddity Tech Ltd. Class A	3,429,295 *(a)
		46,478,772
Pharmaceuticals 0.6%
253,833	Johnson & Johnson	37,653,587
Professional Services 2.7%
457,392	Equifax, Inc.	77,559,961
354,045	Jacobs Solutions, Inc.	47,194,199
1,941,462	Paycor HCM, Inc.	41,896,750 *
		166,650,910
Semiconductors & Semiconductor Equipment 1.8%
299,710	Analog Devices, Inc.	47,153,375
44,409	ASML Holding NV	26,592,553
84,765	NVIDIA Corp.	34,567,167
		108,313,095
Software 11.5%
222,095	Adobe, Inc.	118,167,866 *
359,091	Arctic Wolf Networks, Inc.	3,841,807 *#(c)(d)
91,770	Atlassian Corp. Class A	16,577,333 *
179,381	Grammarly, Inc. Class A	3,217,360 *#(c)(d)
99,073	Intuit, Inc.	49,036,181
41,693	Klaviyo, Inc. Class A	1,187,834 *
668,466	Microsoft Corp.	226,015,039
654,285	Salesforce, Inc.	131,400,056 *
84,949	ServiceNow, Inc.	49,427,576 *
247,022	Splunk, Inc.	36,351,757 *
308,835	Workday, Inc. Class A	65,383,458 *
		700,606,267
Specialized REITs 1.1%
38,149	Equinix, Inc.	27,835,036
187,930	SBA Communications Corp.	39,207,836
		67,042,872
Specialty Retail 6.8%
216,275	Asbury Automotive Group, Inc.	41,388,547 *
3,110,213	Chewy, Inc. Class A	60,120,417 *

Number of Shares		Value
Specialty Retail – cont'd
2,026,590	Fanatics Holdings, Inc. Class A	$160,728,853 *#(c)(d)
104,931	Home Depot, Inc.	29,872,806
1,380,179	TJX Cos., Inc.	121,552,365
		413,662,988
Technology Hardware, Storage & Peripherals 2.2%
805,422	Apple, Inc.	137,541,915
Textiles, Apparel & Luxury Goods 0.5%
323,426	NIKE, Inc. Class B	33,238,490
Total Common Stocks (Cost $3,667,354,741)		4,661,363,081
Preferred Stocks 0.9%
Entertainment 0.1%
39,203	A24 Films LLC	4,611,449 *#(c)(d)(e)
Internet 0.5%
23,000	Fabletics LLC Series G	25,904,900 *#(c)(d)
82,110	Savage X, Inc. Series C	3,757,354 *#(c)(d)
		29,662,254
IT Services 0.2%
959,038	Cybereason, Inc. Series F	441,157 *#(c)(d)
658,071	Druva, Inc. Series 4	5,580,442 *#(c)(d)
480,112	Druva, Inc. Series 5	4,599,473 *#(c)(d)
		10,621,072
Software 0.1%
55,626	Grammarly, Inc. Series 3	1,623,454 *#(c)(d)
180,619	Signifyd, Inc. Series Seed	1,641,827 *#(c)(d)
78,686	Signifyd, Inc. Series A	716,829 *#(c)(d)
325,371	Videoamp, Inc. Series F1	5,671,217 *#(c)(d)
		9,653,327
Total Preferred Stocks (Cost $58,686,273)		54,548,102
Number of Units
Master Limited Partnerships and Limited Partnerships 2.2%
Multi-Utilities 0.6%
1,600,530	Brookfield Infrastructure Partners LP	36,235,999

See Notes to Consolidated Financial Statements

15

Consolidated Schedule of Investments Long Short Fund^  (cont’d)

Number of Units		Value
Oil, Gas & Consumable Fuels 1.6%
3,825,906	Enterprise Products Partners LP	$99,626,592
Total Master Limited Partnerships and Limited Partnerships (Cost $125,075,723)		135,862,591

 

Principal Amount		Value
Corporate Bonds 3.4%
Beverages 0.1%
$11,355,000	PepsiCo, Inc., 2.75%, due 10/21/2051	$6,597,615
Computers 0.2%
26,630,000	Apple, Inc., 2.85%, due 8/5/2061	14,803,514
Diversified Financial Services 0.0%(f)
2,838,000	Mastercard, Inc., 2.95%, due 3/15/2051	1,731,773
Electric 0.1%
11,350,000	Florida Power & Light Co., 2.88%, due 12/4/2051	6,435,984
Healthcare - Services 0.2%
	UnitedHealth Group, Inc.
4,775,000	5.05%, due 4/15/2053	4,015,485
12,337,000	3.13%, due 5/15/2060	7,020,396
		11,035,881
Internet 0.9%
21,397,000	Alphabet, Inc., 2.25%, due 8/15/2060	10,819,556
19,932,000	Amazon.com, Inc., 3.25%, due 5/12/2061	11,936,257
	Meta Platforms, Inc.
6,693,000	5.60%, due 5/15/2053	6,053,264
18,990,000	4.65%, due 8/15/2062	14,319,708
478,000	5.75%, due 5/15/2063	428,835
9,590,000	Uber Technologies, Inc., 8.00%, due 11/1/2026	9,657,629 (g)
		53,215,249
Machinery - Diversified 0.1%
2,850,000	nVent Finance SARL, 4.55%, due 4/15/2028	2,643,786 (b)
Miscellaneous Manufacturer 0.6%
	Anagram International, Inc./Anagram Holdings LLC
25,586,603	10.00% Cash & 5.00% PIK, due 8/15/2025	25,714,536 (g)(h)(i)
19,239,321	5.00% Cash & 5.00% PIK, due 8/15/2026	13,275,131 (c)(d)(g)(h)(i)
		38,989,667
Office - Business Equipment 0.1%
5,700,000	CDW LLC/CDW Finance Corp., 2.67%, due 12/1/2026	5,098,593
Pharmaceuticals 0.2%
20,880,000	Johnson & Johnson, 2.45%, due 9/1/2060	10,715,859

See Notes to Consolidated Financial Statements

16

Consolidated Schedule of Investments Long Short Fund^  (cont’d)

Principal Amount		Value
Real Estate Investment Trusts 0.0%(f)
$2,850,000	SBA Communications Corp., 3.88%, due 2/15/2027	$2,595,481
Retail 0.3%
	Walmart, Inc.
20,880,000	2.65%, due 9/22/2051	11,984,752
4,770,000	4.50%, due 4/15/2053	3,873,058
		15,857,810
Software 0.6%
20,890,000	Activision Blizzard, Inc., 2.50%, due 9/15/2050	11,677,914
17,082,000	Microsoft Corp., 2.68%, due 6/1/2060	9,445,571
	Oracle Corp.
9,550,000	6.90%, due 11/9/2052	9,410,605
14,212,000	3.85%, due 4/1/2060	8,530,043
		39,064,133
Total Corporate Bonds (Cost $232,884,431)		208,785,345
Convertible Bonds 0.3%
Software 0.3%
19,850	Arctic Wolf Networks, Inc., 0.00%, due 9/29/2027 (Cost $19,850,000)	20,514,975 #(c)(d)

 

Number of Shares
Warrants 0.1%
Diversified Consumer Services 0.1%
653,334	OneSpaWorld Holdings Ltd. Expires 6/12/2025 (Cost $0)	$3,443,070 *(c)(d)
Short-Term Investments 9.6%
Investment Companies 9.6%
583,764,456	State Street Institutional U.S. Government Money Market Fund Premier Class, 5.30%(j)	583,764,456
1,942,407	State Street Navigator Securities Lending Government Money Market Portfolio, 5.36%(j)	1,942,407 (k)
Total Short-Term Investments (Cost $585,706,863)		585,706,863
Total Long Positions (92.7%) (Cost $4,689,558,031)		5,670,224,027

 

Number of Shares		Value
Short Positions ((15.3)%)
Common Stocks Sold Short (14.6)%
Air Freight & Logistics (0.1)%
(78,100 )	Expeditors International of Washington, Inc.	$(8,532,425 )

Number of Shares		Value
Automobiles (0.4)%
(498,230 )	Ford Motor Co.	$(4,857,743 )
(97,360 )	Tesla, Inc.	(19,553,782 )*
		(24,411,525 )
Beverages (0.1)%
(312,611 )	Vita Coco Co., Inc.	(8,471,758 )*

See Notes to Consolidated Financial Statements

17

Consolidated Schedule of Investments Long Short Fund^  (cont’d)

Number of Shares		Value
Building Products (0.1)%
(57,000 )	Allegion PLC	$(5,606,520 )
Capital Markets (0.6)%
(224,973 )	Moelis & Co.	(9,367,876 )
(327,260 )	T Rowe Price Group, Inc.	(29,617,030 )
		(38,984,906 )
Commercial Services & Supplies (0.2)%
(922,912 )	Steelcase, Inc.	(10,068,970 )
Consumer Finance (0.4)%
(35,432 )	Credit Acceptance Corp.	(14,258,900 )*
(368,180 )	SoFi Technologies, Inc.	(2,779,759 )*
(47,213 )	World Acceptance Corp.	(4,656,146 )*
		(21,694,805 )
Consumer Staples Distribution & Retail (1.1)%
(196,508 )	BJ's Wholesale Club Holdings, Inc.	(13,386,125 )*
(229,610 )	Dollar General Corp.	(27,332,774 )
(391,569 )	Grocery Outlet Holding Corp.	(10,834,714 )*
(230,139 )	Maplebear, Inc.	(5,668,324 )*
(181,997 )	Sprouts Farmers Market, Inc.	(7,647,514 )*
		(64,869,451 )
Diversified Consumer Services (0.1)%
(18,454 )	Duolingo, Inc.	(2,695,207 )*
(453,992 )	Udemy, Inc.	(4,054,148 )*
		(6,749,355 )
Electric Utilities (0.3)%
(310,576 )	Southern Co.	(20,901,765 )
Electrical Equipment (0.3)%
(61,800 )	Eaton Corp. PLC	(12,848,838 )
(407,094 )	Sunrun, Inc.	(3,928,457 )*
		(16,777,295 )
Entertainment (0.7)%
(305,330 )	ROBLOX Corp.	(9,712,547 )*
(215,880 )	Walt Disney Co.	(17,613,649 )*
(1,740,817 )	Warner Bros Discovery, Inc.	(17,303,721 )*
		(44,629,917 )
Food Products (1.1)%
(215,646 )	Campbell Soup Co.	(8,714,255 )
(534,594 )	Conagra Brands, Inc.	(14,626,492 )
(423,109 )	Flowers Foods, Inc.	(9,278,780 )
(19,389 )	J & J Snack Foods Corp.	(3,036,511 )
(200,218 )	J M Smucker Co.	(22,792,817 )
(116,752 )	McCormick & Co., Inc.	(7,460,453 )

Number of Shares		Value
Food Products – cont'd
(64,022 )	Tyson Foods, Inc.	$(2,967,420 )
		(68,876,728 )
Ground Transportation (0.1)%
(36,500 )	Landstar System, Inc.	(6,014,470 )
Health Care Providers & Services (0.5)%
(593,943 )	agilon health, Inc.	(10,690,974 )*
(133,245 )	Centene Corp.	(9,191,240 )*
(113,878 )	DaVita, Inc.	(8,794,798 )*
		(28,677,012 )
Hotels, Restaurants & Leisure (0.6)%
(399,201 )	Cava Group, Inc.	(12,610,760 )*
(121,197 )	Darden Restaurants, Inc.	(17,637,799 )
(174,896 )	Dutch Bros, Inc.	(4,256,969 )*
		(34,505,528 )
Household Durables (0.1)%
(374,650 )	Cricut, Inc.	(3,195,764 )
(19,602 )	TopBuild Corp.	(4,484,154 )*
		(7,679,918 )
Independent Power and Renewable Electricity Producers (0.1)%
(284,981 )	Clearway Energy, Inc.	(6,186,937 )
Insurance (0.5)%
(176,142 )	Lemonade, Inc.	(1,926,994 )*
(44,269 )	RenaissanceRe Holdings Ltd.	(9,721,030 )
(375,932 )	Ryan Specialty Holdings, Inc.	(16,240,262 )*
		(27,888,286 )
Interactive Media & Services (0.2)%
(2,108,290 )	fuboTV, Inc.	(5,102,062 )*
(249,636 )	Shutterstock, Inc.	(10,155,192 )
		(15,257,254 )
IT Services (0.2)%
(76,743 )	International Business Machines Corp.	(11,100,108 )
Life Sciences Tools & Services (0.3)%
(58,210 )	Agilent Technologies, Inc.	(6,017,168 )
(4,823 )	Mettler-Toledo International, Inc.	(4,751,619 )*
(24,836 )	Waters Corp.	(5,924,131 )*
		(16,692,918 )
Machinery (0.7)%
(81,200 )	Graco, Inc.	(6,037,220 )
(80,957 )	Illinois Tool Works, Inc.	(18,144,083 )
(91,308 )	Ingersoll Rand, Inc.	(5,540,569 )

See Notes to Consolidated Financial Statements

18

Consolidated Schedule of Investments Long Short Fund^  (cont’d)

Number of Shares		Value
Machinery – cont'd
(63,600 )	ITT, Inc.	$(5,937,060 )
(70,700 )	Timken Co.	(4,886,784 )
		(40,545,716 )
Media (1.0)%
(610,924 )	Interpublic Group of Cos., Inc.	(17,350,242 )
(275,563 )	Omnicom Group, Inc.	(20,642,424 )
(332,492 )	Trade Desk, Inc.	(23,593,632 )*
		(61,586,298 )
Passenger Airlines (0.1)%
(906,169 )	Joby Aviation, Inc.	(4,775,511 )*
Professional Services (0.7)%
(73,091 )	Paycom Software, Inc.	(17,905,102 )
(100,387 )	Paylocity Holding Corp.	(18,009,428 )*
(127,186 )	Robert Half, Inc.	(9,509,697 )
		(45,424,227 )
Real Estate Management & Development (0.2)%
(931,489 )	Compass, Inc.	(1,844,349 )*
(3,125,398 )	Opendoor Technologies, Inc.	(5,938,256 )*
(1,411,732 )	Redfin Corp.	(6,578,671 )*
		(14,361,276 )
Semiconductors & Semiconductor Equipment (0.3)%
(148,344 )	ARM Holdings PLC	(7,311,876 )*
(31,562 )	Enphase Energy, Inc.	(2,511,704 )*
(65,269 )	Texas Instruments, Inc.	(9,268,850 )
		(19,092,430 )

Number of Shares		Value
Software (1.2)%
(106,617 )	Descartes Systems Group, Inc.	$(7,698,814 )*
(30,221 )	HubSpot, Inc.	(12,806,753 )*
(1,870,705 )	Palantir Technologies, Inc.	(27,686,434 )*
(662,176 )	Samsara, Inc.	(15,276,400 )*
(82,102 )	SAP SE	(11,001,668 )
		(74,470,069 )
Specialized REITs (0.6)%
(157,149 )	Iron Mountain, Inc.	(9,282,791 )
(344,669 )	Lamar Advertising Co.	(28,355,919 )
		(37,638,710 )
Specialty Retail (1.5)%
(315,446 )	Best Buy Co., Inc.	(21,078,102 )
(336,461 )	CarMax, Inc.	(20,554,402 )*
(196,045 )	Children's Place, Inc.	(5,365,752 )*
(236,056 )	Floor & Decor Holdings, Inc.	(19,451,014 )*
(435,602 )	Sonic Automotive, Inc.	(20,843,556 )
(176,369 )	Upbound Group, Inc.	(4,596,176 )
		(91,889,002 )
Textiles, Apparel & Luxury Goods (0.2)%
(376,716 )	G-III Apparel Group Ltd.	(9,625,094 )*
(105,744 )	Gildan Activewear, Inc.	(3,004,187 )
		(12,629,281 )
Total Common Stocks Sold Short (Proceeds $(953,512,475))		(896,990,371 )

 

Principal Amount
Corporate Bonds Sold Short (0.7)%
Diversified Financial Services (0.2)%
$(5,000,000 )	Radian Group, Inc., 4.88%, due 3/15/2027	$(4,650,658 )
(5,000,000 )	Rocket Mortgage LLC/Rocket Mortgage Co.-Issuer, Inc., 3.63%, due 3/1/2029	(4,076,566 )(g)
		(8,727,224 )
Insurance (0.0)%(f)
(2,650,000 )	Hartford Financial Services Group, Inc., 3 mo. USD Term SOFR + 2.39%, 7.75%, due 2/12/2047	(2,275,470 )(g)(l)
Lodging (0.1)%
(7,000,000 )	Boyd Gaming Corp., 4.75%, due 12/1/2027	(6,396,216 )
Media (0.1)%
(4,000,000 )	iHeartCommunications, Inc., 8.38%, due 5/1/2027	(2,459,595 )
(5,000,000 )	Sirius XM Radio, Inc., 4.00%, due 7/15/2028	(4,261,411 )(g)
		(6,721,006 )
Office Equipment (0.1)%
(7,000,000 )	Steelcase, Inc., 5.13%, due 1/18/2029	(6,188,336 )

See Notes to Consolidated Financial Statements

19

Consolidated Schedule of Investments Long Short Fund^  (cont’d)

Principal Amount		Value
Pipelines (0.1)%
$(8,170,000 )	TransCanada PipeLines Ltd., (3 mo. USD LIBOR + 2.21%), 7.84%, due 5/15/2067	$(6,552,737 )(l)
Retail (0.1)%
(5,000,000 )	Macy's Retail Holdings LLC, 5.88%, due 4/1/2029	(4,418,250 )(g)
Total Corporate Bonds Sold Short (Proceeds $(45,670,283))		(41,279,239 )
Total Short Positions (Proceeds $(999,182,758))		(938,269,610 )
Total Investments 77.4% (Cost $3,690,375,273)		4,731,954,417
Other Assets Less Liabilities 22.6%		1,385,328,475 (m)
Net Assets 100.0%		$6,117,282,892

 

*	Non-income producing security.
(a)	All or a portion of this security is on loan at October 31, 2023. Total value of all such securities at October 31, 2023 amounted to $18,305,569, collateralized by cash collateral of $1,942,407 and non-cash (U.S. Treasury Securities) collateral of $16,842,776 for the Fund (see Note A of the Notes to Financial Statements).
(b)	Step Bond. Coupon rate is a fixed rate for an initial period that either resets at a specific date or may reset in the future contingent upon a predetermined trigger. The interest rate shown was the current rate as of October 31, 2023.
(c)	Value determined using significant unobservable inputs.
(d)	Security fair valued as of October 31, 2023 in accordance with procedures approved by the valuation designee. Total value of all such securities at October 31, 2023 amounted to $259,569,298, which represents 4.2% of net assets of the Fund.
(e)	Security represented in Units.
(f)	Represents less than 0.05% of net assets of the Fund.
(g)	Securities were purchased or sold short under Rule 144A of the Securities Act of 1933, as amended, or are otherwise restricted and, unless registered under the Securities Act of 1933 or exempted from registration, may only be sold to qualified institutional investors or may have other restrictions on resale. At October 31, 2023, these securities amounted to $48,647,296 of long positions and $(15,031,697) of short positions, which represents 0.8% and (0.2)%, respectively, of net assets of the Fund.
(h)	Defaulted security.
(i)	Payment-in-kind (PIK) security.
(j)	Represents 7-day effective yield as of October 31, 2023.
(k)	Represents investment of cash collateral received from securities lending.
(l)	Variable or floating rate security. The interest rate shown was the current rate as of October 31, 2023 and changes periodically.
(m)	Includes the impact of the Fund’s open positions in derivatives at October 31, 2023.

#

This security has been deemed by Management to be illiquid, and is subject to restrictions on resale. Total value of all such securities at October 31, 2023 amounted to $242,851,097, which represents 4.0% of net assets of the Fund. Acquisition dates shown with a range, if any, represent securities that were acquired over the period shown in the table.

See Notes to Consolidated Financial Statements

20

Consolidated Schedule of Investments Long Short Fund^  (cont’d)

Restricted Security	Acquisition Date(s)	Acquisition Cost	Value as of 10/31/2023	Fair Value Percentage of Net Assets as of 10/31/2023
A24 Films LLC (Preferred Units)	2/25/2022	$4,463,654	$4,611,449	0.1 %
Arctic Wolf Networks, Inc.	12/31/2021	3,950,001	3,841,807	0.1 %
Arctic Wolf Networks, Inc. (Convertible Bonds)	9/30/2022	19,850,000	20,514,975	0.3 %
Cybereason, Inc. (Series F Preferred Shares)	7/19/2021	4,750,000	441,157	0.0 %
Druva, Inc. (Series 4 Preferred Shares)	6/14/2019	3,429,998	5,580,442	0.1 %
Druva, Inc. (Series 5 Preferred Shares)	4/1/2021	4,500,000	4,599,473	0.1 %
Fabletics LLC (Series G Preferred Shares)	1/10/2022	23,000,000	25,904,900	0.4 %
Fanatics Holdings, Inc. Class A	8/13/2020-4/29/2021	35,957,294	160,728,853	2.6 %
Grammarly, Inc. (Series 3 Preferred Shares)	12/23/2021-1/24/2022	1,458,063	1,623,454	0.0 %
Grammarly, Inc. Class A	12/23/2021-1/24/2022	4,701,917	3,217,360	0.1 %
Savage X, Inc. (Series C Preferred Shares)	11/30/2021	3,949,983	3,757,354	0.1 %
Signifyd, Inc. (Series A Preferred Shares)	5/24/2021	2,427,463	716,829	0.0 %
Signifyd, Inc. (Series Seed Preferred Shares)	5/24/2021	5,572,107	1,641,827	0.0 %
Videoamp, Inc. (Series F1 Preferred Shares)	1/4/2022	5,135,005	5,671,217	0.1 %
Total		$123,145,485	$242,851,097	4.0 %

See Notes to Consolidated Financial Statements

21

Consolidated Schedule of Investments Long Short Fund^  (cont’d)

Derivative Instruments

Futures contracts ("futures")

At October 31, 2023, open positions in futures for the Fund were as follows: 

 

Short Futures:

 

Expiration Date	Number of Contracts	Open Contracts	Notional Amount	Value and Unrealized Appreciation/ (Depreciation)
12/2023	1,042	NASDAQ 100 E-Mini Index	$(301,976,810)	$21,007,596
12/2023	3,462	S&P 500 E-Mini Index	(729,140,475)	48,287,089
Total Futures				$69,294,685

For the year ended October 31, 2023, the average notional value for the months where the Fund had futures outstanding was $(763,116,711) for short positions.

Total return basket swap contracts ("total return basket swaps")

At October 31, 2023, the Fund had outstanding total return basket swaps(a) as follows: 

Over-the-counter total return basket swaps—Short(b)

 

Counterparty	Reference Entity	Effective Variable Rate(c)	Spread	Reference Rate	Frequency of Fund Receipt/ Payment	Maturity Date(s)	Value
GSI	GSCBOEC1	4.93 %	(0.40 )%	FEDL01	3M/T	1/19/2024	$(14,955,904 )
GSI	GSCBOEC1	4.93 %	(0.40 )%	FEDL01	3M/T	1/19/2024	(2,323,515 )
GSI	GSCBOEC1	4.93 %	(0.40 )%	FEDL01	3M/T	1/19/2024	(65,761 )
JPM	JPNBGCND	4.67 %	(0.65 )%	OBFR	1M/T	11/1/2024	1,785,223
JPM	JPNBHLLP	5.51 %	0.19 %	OBFR	1M/T	4/28/2025	(345,252 )
JPM	JPNBLQGS	5.35 %	0.03 %	OBFR	1M/T	7/19/2024	(1,663,069 )
JPM	JPNBLQGS	5.35 %	0.03 %	OBFR	1M/T	7/19/2024	(173,129 )
JPM	JPNBLQGS	5.35 %	0.03 %	OBFR	1M/T	7/19/2024	(44,010 )
Total							$(17,785,417 )

(a) The following table represents required component disclosures associated with the total return basket swaps: 

Reference Entity	Shares	Notional Amount	Unrealized Appreciation/ (Depreciation)	Component Weighting
GSCBOEC1
Super Micro Computer Inc	(18,200 )	$(8,142,805 )	$(1,129,672 )	7.5 %
Jabil Inc	(18,188 )	(4,173,001 )	(578,931 )	3.8 %
EMCOR Group Inc	(9,486 )	(3,662,325 )	(508,084 )	3.4 %
Flex Ltd	(66,914 )	(3,215,447 )	(446,087 )	2.9 %
United Rentals Inc	(3,846 )	(2,919,061 )	(404,969 )	2.7 %
WW Grainger Inc	(2,120 )	(2,890,741 )	(401,040 )	2.7 %
Onto Innovation Inc	(13,674 )	(2,870,824 )	(398,277 )	2.6 %
XPO Inc	(20,183 )	(2,858,648 )	(396,588 )	2.6 %
Group 1 Automotive Inc	(5,869 )	(2,766,641 )	(383,823 )	2.5 %

See Notes to Consolidated Financial Statements

22

Consolidated Schedule of Investments Long Short Fund^  (cont’d)

Reference Entity	Shares	Notional Amount	Unrealized Appreciation/ (Depreciation)	Component Weighting
GSCBOEC1 (cont’d)
Signet Jewelers Ltd	(17,508 )	$(2,284,253 )	$(316,900 )	2.1 %
A O Smith Corp	(17,103 )	(2,229,086 )	(309,247 )	2.0 %
STMicroelectronics NV	(29,623 )	(2,102,003 )	(291,616 )	1.9 %
Herc Holdings Inc	(10,526 )	(2,100,069 )	(291,348 )	1.9 %
Matson Inc	(12,748 )	(2,073,394 )	(287,647 )	1.9 %
Microchip Technology Inc	(15,531 )	(2,068,671 )	(286,992 )	1.9 %
Landstar System Inc	(6,709 )	(2,065,314 )	(286,526 )	1.9 %
ON Semiconductor Corp	(17,280 )	(2,022,306 )	(280,560 )	1.9 %
Cummins Inc	(4,937 )	(1,995,188 )	(276,798 )	1.8 %
Avis Budget Group Inc	(6,383 )	(1,941,427 )	(269,339 )	1.8 %
Churchill Downs Inc	(9,429 )	(1,934,897 )	(268,433 )	1.8 %
Boyd Gaming Corp	(18,583 )	(1,918,211 )	(266,118 )	1.8 %
Boot Barn Holdings Inc	(14,737 )	(1,913,593 )	(265,478 )	1.8 %
NXP Semiconductors NV	(5,909 )	(1,903,474 )	(264,074 )	1.7 %
GMS Inc	(17,371 )	(1,897,992 )	(263,313 )	1.7 %
CSX Corp	(33,577 )	(1,872,577 )	(259,787 )	1.7 %
Steven Madden Ltd	(30,434 )	(1,864,472 )	(258,663 )	1.7 %
Knight-Swift Transportation Holdings Inc	(20,068 )	(1,833,108 )	(254,312 )	1.7 %
Masco Corp	(18,080 )	(1,759,561 )	(244,109 )	1.6 %
Diodes Inc	(13,897 )	(1,689,758 )	(234,425 )	1.6 %
Morgan Stanley	(12,417 )	(1,642,968 )	(227,933 )	1.5 %
Power Integrations Inc	(12,669 )	(1,640,969 )	(227,656 )	1.5 %
U-Haul Holding Co	(18,360 )	(1,619,415 )	(224,666 )	1.5 %
Werner Enterprises Inc	(23,800 )	(1,615,007 )	(224,054 )	1.5 %
Texas Instruments Inc	(6,034 )	(1,601,019 )	(222,113 )	1.5 %
Popular Inc	(12,674 )	(1,540,124 )	(213,665 )	1.4 %
Ford Motor Co	(81,560 )	(1,485,707 )	(206,116 )	1.4 %
Bank of America Corp	(30,046 )	(1,478,597 )	(205,130 )	1.4 %
Discover Financial Services	(9,314 )	(1,428,363 )	(198,160 )	1.3 %
ABM Industries Inc	(19,068 )	(1,401,535 )	(194,439 )	1.3 %
United Parcel Service Inc	(5,309 )	(1,400,934 )	(194,355 )	1.3 %
Photronics Inc	(40,560 )	(1,391,305 )	(193,019 )	1.3 %
Korn Ferry	(16,303 )	(1,386,492 )	(192,352 )	1.3 %
Sonic Automotive Inc	(15,463 )	(1,382,366 )	(191,779 )	1.3 %
Macy's Inc	(58,337 )	(1,327,529 )	(184,172 )	1.2 %
Badger Meter Inc	(5,126 )	(1,326,821 )	(184,073 )	1.2 %
Customers Bancorp Inc	(17,600 )	(1,322,204 )	(183,433 )	1.2 %
Hibbett Inc	(15,120 )	(1,301,432 )	(180,551 )	1.2 %
Buckle Inc/The	(18,943 )	(1,195,166 )	(165,808 )	1.1 %
FormFactor Inc	(18,223 )	(1,153,484 )	(160,026 )	1.1 %
SiTime Corp	(6,126 )	(1,142,192 )	(158,459 )	1.0 %
Granite Construction Inc	(14,886 )	(1,125,801 )	(156,185 )	1.0 %
Other Securities	(80,149 )	(5,131,411 )	(711,896 )	4.6 %
		$(109,009,688 )	$(15,123,196 )
Accrued Net Interest Receivable/(Payable)			167,292
			$(14,955,904 )

See Notes to Consolidated Financial Statements

23

Consolidated Schedule of Investments Long Short Fund^  (cont’d)

Reference Entity	Shares	Notional Amount	Unrealized Appreciation/ (Depreciation)	Component Weighting
GSCBOEC1
Super Micro Computer Inc	(4,800 )	$(2,147,667 )	$(201,666 )	7.5 %
Jabil Inc	(4,797 )	(1,100,630 )	(103,349 )	3.8 %
EMCOR Group Inc	(2,502 )	(965,939 )	(90,702 )	3.4 %
Flex Ltd	(17,649 )	(848,075 )	(79,634 )	2.9 %
United Rentals Inc	(1,014 )	(769,903 )	(72,294 )	2.7 %
WW Grainger Inc	(559 )	(762,434 )	(71,592 )	2.7 %
Onto Innovation Inc	(3,607 )	(757,180 )	(71,099 )	2.6 %
XPO Inc	(5,323 )	(753,969 )	(70,798 )	2.6 %
Group 1 Automotive Inc	(1,548 )	(729,702 )	(68,519 )	2.5 %
Signet Jewelers Ltd	(4,618 )	(602,472 )	(56,572 )	2.1 %
A O Smith Corp	(4,511 )	(587,922 )	(55,206 )	2.0 %
STMicroelectronics NV	(7,813 )	(554,404 )	(52,058 )	1.9 %
Herc Holdings Inc	(2,776 )	(553,894 )	(52,011 )	1.9 %
Matson Inc	(3,362 )	(546,858 )	(51,350 )	1.9 %
Microchip Technology Inc	(4,096 )	(545,613 )	(51,233 )	1.9 %
Landstar System Inc	(1,769 )	(544,727 )	(51,150 )	1.9 %
ON Semiconductor Corp	(4,558 )	(533,384 )	(50,085 )	1.9 %
Cummins Inc	(1,302 )	(526,231 )	(49,413 )	1.8 %
Avis Budget Group Inc	(1,683 )	(512,052 )	(48,082 )	1.8 %
Churchill Downs Inc	(2,487 )	(510,330 )	(47,920 )	1.8 %
Boyd Gaming Corp	(4,901 )	(505,929 )	(47,507 )	1.8 %
Boot Barn Holdings Inc	(3,887 )	(504,711 )	(47,392 )	1.8 %
NXP Semiconductors NV	(1,558 )	(502,042 )	(47,142 )	1.7 %
GMS Inc	(4,582 )	(500,596 )	(47,006 )	1.7 %
CSX Corp	(8,856 )	(493,893 )	(46,376 )	1.7 %
Steven Madden Ltd	(8,027 )	(491,755 )	(46,176 )	1.7 %
Knight-Swift Transportation Holdings Inc	(5,293 )	(483,483 )	(45,399 )	1.7 %
Masco Corp	(4,769 )	(464,085 )	(43,578 )	1.6 %
Diodes Inc	(3,665 )	(445,674 )	(41,849 )	1.6 %
Morgan Stanley	(3,275 )	(433,333 )	(40,690 )	1.5 %
Power Integrations Inc	(3,341 )	(432,806 )	(40,640 )	1.5 %
U-Haul Holding Co	(4,842 )	(427,121 )	(40,107 )	1.5 %
Werner Enterprises Inc	(6,277 )	(425,958 )	(39,997 )	1.5 %
Texas Instruments Inc	(1,592 )	(422,269 )	(39,651 )	1.5 %
Popular Inc	(3,343 )	(406,208 )	(38,143 )	1.4 %
Ford Motor Co	(21,511 )	(391,856 )	(36,795 )	1.4 %
Bank of America Corp	(7,925 )	(389,980 )	(36,619 )	1.4 %
Discover Financial Services	(2,457 )	(376,731 )	(35,375 )	1.3 %
ABM Industries Inc	(5,029 )	(369,655 )	(34,711 )	1.3 %
United Parcel Service Inc	(1,400 )	(369,497 )	(34,696 )	1.3 %
Photronics Inc	(10,698 )	(366,957 )	(34,457 )	1.3 %
Korn Ferry	(4,300 )	(365,688 )	(34,338 )	1.3 %
Sonic Automotive Inc	(4,078 )	(364,599 )	(34,236 )	1.3 %
Macy's Inc	(15,386 )	(350,136 )	(32,878 )	1.2 %
Badger Meter Inc	(1,352 )	(349,949 )	(32,860 )	1.2 %
Customers Bancorp Inc	(4,642 )	(348,732 )	(32,746 )	1.2 %

See Notes to Consolidated Financial Statements

24

Consolidated Schedule of Investments Long Short Fund^  (cont’d)

Reference Entity	Shares	Notional Amount	Unrealized Appreciation/ (Depreciation)	Component Weighting
GSCBOEC1 (cont’d)
Hibbett Inc	(3,988 )	$(343,253 )	$(32,231 )	1.2 %
Buckle Inc/The	(4,996 )	(315,225 )	(29,600 )	1.1 %
FormFactor Inc	(4,806 )	(304,232 )	(28,567 )	1.1 %
SiTime Corp	(1,616 )	(301,253 )	(28,288 )	1.0 %
Granite Construction Inc	(3,926 )	(296,930 )	(27,882 )	1.0 %
Other Securities	(21,142 )	(1,353,410 )	(127,085 )	4.6 %
		$(28,751,332 )	$(2,699,750 )
Accrued Net Interest Receivable/(Payable)			376,235
			$(2,323,515 )
GSCBOEC1
Super Micro Computer Inc	(1,466 )	$(656,052 )	$(6,070 )	7.5 %
Jabil Inc	(1,465 )	(336,212 )	(3,111 )	3.8 %
EMCOR Group Inc	(764 )	(295,067 )	(2,730 )	3.4 %
Flex Ltd	(5,391 )	(259,063 )	(2,397 )	2.9 %
United Rentals Inc	(310 )	(235,184 )	(2,176 )	2.7 %
WW Grainger Inc	(171 )	(232,902 )	(2,155 )	2.7 %
Onto Innovation Inc	(1,102 )	(231,297 )	(2,140 )	2.6 %
XPO Inc	(1,626 )	(230,317 )	(2,131 )	2.6 %
Group 1 Automotive Inc	(473 )	(222,904 )	(2,063 )	2.5 %
Signet Jewelers Ltd	(1,411 )	(184,038 )	(1,703 )	2.1 %
A O Smith Corp	(1,378 )	(179,594 )	(1,662 )	2.0 %
STMicroelectronics NV	(2,387 )	(169,355 )	(1,567 )	1.9 %
Herc Holdings Inc	(848 )	(169,199 )	(1,566 )	1.9 %
Matson Inc	(1,027 )	(167,050 )	(1,546 )	1.9 %
Microchip Technology Inc	(1,251 )	(166,669 )	(1,542 )	1.9 %
Landstar System Inc	(540 )	(166,399 )	(1,540 )	1.9 %
ON Semiconductor Corp	(1,392 )	(162,934 )	(1,508 )	1.9 %
Cummins Inc	(398 )	(160,749 )	(1,487 )	1.8 %
Avis Budget Group Inc	(514 )	(156,418 )	(1,447 )	1.8 %
Churchill Downs Inc	(760 )	(155,891 )	(1,442 )	1.8 %
Boyd Gaming Corp	(1,497 )	(154,547 )	(1,430 )	1.8 %
Boot Barn Holdings Inc	(1,187 )	(154,175 )	(1,427 )	1.8 %
NXP Semiconductors NV	(476 )	(153,360 )	(1,419 )	1.7 %
GMS Inc	(1,400 )	(152,918 )	(1,415 )	1.7 %
CSX Corp	(2,705 )	(150,870 )	(1,396 )	1.7 %
Steven Madden Ltd	(2,452 )	(150,217 )	(1,390 )	1.7 %
Knight-Swift Transportation Holdings Inc	(1,617 )	(147,690 )	(1,367 )	1.7 %
Masco Corp	(1,457 )	(141,765 )	(1,312 )	1.6 %
Diodes Inc	(1,120 )	(136,141 )	(1,260 )	1.6 %
Morgan Stanley	(1,000 )	(132,371 )	(1,225 )	1.5 %
Power Integrations Inc	(1,021 )	(132,210 )	(1,223 )	1.5 %
U-Haul Holding Co	(1,479 )	(130,474 )	(1,207 )	1.5 %
Werner Enterprises Inc	(1,918 )	(130,118 )	(1,204 )	1.5 %
Texas Instruments Inc	(486 )	(128,991 )	(1,194 )	1.5 %
Popular Inc	(1,021 )	(124,085 )	(1,148 )	1.4 %
Ford Motor Co	(6,571 )	(119,701 )	(1,108 )	1.4 %

See Notes to Consolidated Financial Statements

25

Consolidated Schedule of Investments Long Short Fund^  (cont’d)

Reference Entity	Shares	Notional Amount	Unrealized Appreciation/ (Depreciation)	Component Weighting
GSCBOEC1 (cont’d)
Bank of America Corp	(2,421 )	$(119,128 )	$(1,102 )	1.4 %
Discover Financial Services	(750 )	(115,081 )	(1,065 )	1.3 %
ABM Industries Inc	(1,536 )	(112,919 )	(1,045 )	1.3 %
United Parcel Service Inc	(428 )	(112,871 )	(1,044 )	1.3 %
Photronics Inc	(3,268 )	(112,095 )	(1,037 )	1.3 %
Korn Ferry	(1,313 )	(111,707 )	(1,034 )	1.3 %
Sonic Automotive Inc	(1,246 )	(111,375 )	(1,031 )	1.3 %
Macy's Inc	(4,700 )	(106,957 )	(990 )	1.2 %
Badger Meter Inc	(413 )	(106,900 )	(989 )	1.2 %
Customers Bancorp Inc	(1,418 )	(106,528 )	(986 )	1.2 %
Hibbett Inc	(1,218 )	(104,854 )	(970 )	1.2 %
Buckle Inc/The	(1,526 )	(96,293 )	(891 )	1.1 %
FormFactor Inc	(1,468 )	(92,934 )	(860 )	1.1 %
SiTime Corp	(494 )	(92,024 )	(851 )	1.0 %
Granite Construction Inc	(1,199 )	(90,704 )	(839 )	1.0 %
Other Securities	(6,459 )	(413,432 )	(3,824 )	4.6 %
		$(8,782,729 )	$(81,266 )
Accrued Net Interest Receivable/(Payable)			15,505
			$(65,761 )
JPNBGCND
Amazon.com Inc	(59,990 )	$(11,643,281 )	$356,030	21.3 %
Home Depot Inc/The	(6,564 )	(2,725,105 )	83,329	5.0 %
Toyota Motor Corp	(94,460 )	(2,354,817 )	72,006	4.3 %
LVMH Moet Hennessy Louis Vuitton SE	(2,152 )	(2,238,764 )	68,457	4.1 %
McDonald's Corp	(5,727 )	(2,189,658 )	66,956	4.0 %
Lowe's Cos Inc	(6,263 )	(1,740,577 )	53,224	3.2 %
Booking Holdings Inc	(368 )	(1,496,842 )	45,771	2.7 %
NIKE Inc	(9,843 )	(1,475,123 )	45,107	2.7 %
Starbucks Corp	(9,919 )	(1,334,220 )	40,798	2.4 %
TJX Cos Inc/The	(10,293 )	(1,322,025 )	40,425	2.4 %
Sony Group Corp	(10,156 )	(1,214,552 )	37,139	2.2 %
O'Reilly Automotive Inc	(728 )	(987,124 )	30,184	1.8 %
Hermes International SCA	(343 )	(931,690 )	28,489	1.7 %
AutoZone Inc	(254 )	(916,235 )	28,017	1.7 %
Chipotle Mexican Grill Inc	(292 )	(828,428 )	25,332	1.5 %
Cie Financiere Richemont SA	(4,767 )	(817,053 )	24,984	1.5 %
Mercedes-Benz Group AG	(8,726 )	(745,908 )	22,808	1.4 %
Compass Group PLC	(18,609 )	(683,420 )	20,898	1.3 %
Target Corp	(4,099 )	(662,294 )	20,252	1.2 %
Marriott International Inc/MD	(2,380 )	(654,475 )	20,013	1.2 %
DR Horton Inc	(4,056 )	(617,455 )	18,881	1.1 %
Honda Motor Co Ltd	(42,555 )	(617,058 )	18,868	1.1 %
Hilton Worldwide Holdings Inc	(2,762 )	(610,354 )	18,663	1.1 %
Ross Stores Inc	(3,508 )	(593,235 )	18,140	1.1 %
Yum! Brands Inc	(3,017 )	(531,827 )	16,262	1.0 %
Oriental Land Co Ltd/Japan	(11,343 )	(530,282 )	16,215	1.0 %

See Notes to Consolidated Financial Statements

26

Consolidated Schedule of Investments Long Short Fund^  (cont’d)

Reference Entity	Shares	Notional Amount	Unrealized Appreciation/ (Depreciation)	Component Weighting
JPNBGCND (cont’d)
Lennar Corp	(3,401 )	$(529,108 )	$16,179	1.0 %
Industria de Diseno Textil SA	(10,090 )	(506,510 )	15,488	0.9 %
Ford Motor Co	(34,313 )	(487,884 )	14,919	0.9 %
eBay Inc	(8,439 )	(482,762 )	14,762	0.9 %
Bayerische Motoren Werke AG	(3,569 )	(482,277 )	14,747	0.9 %
Fast Retailing Co Ltd	(1,506 )	(478,680 )	14,637	0.9 %
General Motors Co	(11,280 )	(463,865 )	14,184	0.9 %
Denso Corp	(19,306 )	(408,709 )	12,498	0.7 %
Aptiv PLC	(3,176 )	(403,934 )	12,352	0.7 %
Kering SA	(672 )	(397,396 )	12,152	0.7 %
Cie Generale des Etablissements Michelin SCA	(8,879 )	(383,681 )	11,732	0.7 %
adidas AG	(1,474 )	(380,166 )	11,625	0.7 %
Dollar General Corp	(2,083 )	(361,585 )	11,057	0.7 %
Toyota Industries Corp	(3,325 )	(353,819 )	10,819	0.6 %
Dollar Tree Inc	(2,010 )	(325,640 )	9,957	0.6 %
Genuine Parts Co	(1,715 )	(322,251 )	9,854	0.6 %
Ulta Beauty Inc	(567 )	(315,267 )	9,640	0.6 %
Bandai Namco Holdings Inc	(10,491 )	(313,327 )	9,581	0.6 %
Panasonic Holdings Corp	(24,340 )	(306,670 )	9,377	0.6 %
Sekisui House Ltd	(10,728 )	(303,465 )	9,279	0.6 %
Bridgestone Corp	(5,522 )	(301,209 )	9,210	0.6 %
MGM Resorts International	(5,648 )	(287,607 )	8,794	0.5 %
Volkswagen AG	(1,817 )	(279,745 )	8,554	0.5 %
Restaurant Brands International Inc	(2,815 )	(275,525 )	8,425	0.5 %
Other Securities	(206,060 )	(4,948,180 )	151,306	9.1 %
		$(54,561,064 )	$1,668,376
Accrued Net Interest Receivable/(Payable)			116,847
			$1,785,223
JPNBHLLP
Wolfspeed Inc	(748 )	$(91,422 )	$(1,049 )	0.3 %
AMC Entertainment Holdings Inc	(2,334 )	(90,035 )	(1,033 )	0.3 %
XPO Inc	(319 )	(87,247 )	(1,001 )	0.3 %
Peloton Interactive Inc	(4,978 )	(85,576 )	(982 )	0.3 %
Maravai LifeSciences Holdings Inc	(3,444 )	(85,344 )	(979 )	0.3 %
SoFi Technologies Inc	(3,109 )	(84,776 )	(973 )	0.3 %
Leidos Holdings Inc	(237 )	(84,705 )	(972 )	0.3 %
Sunrun Inc	(2,420 )	(84,347 )	(968 )	0.3 %
Lumentum Holdings Inc	(594 )	(84,064 )	(964 )	0.3 %
Charter Communications Inc	(58 )	(83,738 )	(961 )	0.3 %
Vertiv Holdings Co	(590 )	(83,698 )	(960 )	0.3 %
Frontier Communications Parent Inc	(1,289 )	(83,412 )	(957 )	0.3 %
Penn Entertainment Inc	(1,161 )	(82,740 )	(949 )	0.3 %
Ecolab Inc	(136 )	(82,470 )	(946 )	0.3 %
Confluent Inc	(789 )	(82,416 )	(945 )	0.3 %
Teladoc Health Inc	(1,377 )	(82,235 )	(943 )	0.3 %
Floor & Decor Holdings Inc	(276 )	(82,208 )	(943 )	0.3 %

See Notes to Consolidated Financial Statements

27

Consolidated Schedule of Investments Long Short Fund^  (cont’d)

Reference Entity	Shares	Notional Amount	Unrealized Appreciation/ (Depreciation)	Component Weighting
JPNBHLLP (cont’d)
Spirit AeroSystems Holdings Inc	(1,006 )	$(82,140 )	$(942 )	0.3 %
Novocure Ltd	(1,705 )	(81,896 )	(940 )	0.3 %
Dick's Sporting Goods Inc	(212 )	(81,769 )	(938 )	0.3 %
GE HealthCare Technologies Inc	(340 )	(81,674 )	(937 )	0.3 %
Ryder System Inc	(232 )	(81,638 )	(937 )	0.3 %
R1 RCM Inc	(1,914 )	(81,519 )	(935 )	0.3 %
US Foods Holding Corp	(579 )	(81,490 )	(935 )	0.3 %
Petco Health & Wellness Co Inc	(6,514 )	(81,410 )	(934 )	0.3 %
Stericycle Inc	(546 )	(81,353 )	(933 )	0.3 %
RingCentral Inc	(847 )	(81,339 )	(933 )	0.3 %
Integra LifeSciences Holdings Corp	(626 )	(81,312 )	(933 )	0.3 %
AGNC Investment Corp	(3,050 )	(81,312 )	(933 )	0.3 %
Concentrix Corp	(295 )	(81,236 )	(932 )	0.3 %
FedEx Corp	(94 )	(81,234 )	(932 )	0.3 %
RB Global Inc	(344 )	(81,200 )	(932 )	0.3 %
Vestis Corp	(1,470 )	(81,196 )	(931 )	0.3 %
Performance Food Group Co	(389 )	(81,163 )	(931 )	0.3 %
Bath & Body Works Inc	(757 )	(81,082 )	(930 )	0.3 %
Zions Bancorp NA	(727 )	(81,057 )	(930 )	0.3 %
Kyndryl Holdings Inc	(1,533 )	(81,022 )	(930 )	0.3 %
Bank of America Corp	(852 )	(81,018 )	(929 )	0.3 %
Travel + Leisure Co	(659 )	(80,974 )	(929 )	0.3 %
Goldman Sachs Group Inc/The	(74 )	(80,972 )	(929 )	0.3 %
Morningstar Inc	(89 )	(80,951 )	(929 )	0.3 %
Entergy Corp	(234 )	(80,939 )	(929 )	0.3 %
DISH Network Corp	(4,571 )	(80,905 )	(928 )	0.3 %
TopBuild Corp	(98 )	(80,898 )	(928 )	0.3 %
Wayfair Inc	(526 )	(80,896 )	(928 )	0.3 %
Colgate-Palmolive Co	(298 )	(80,837 )	(927 )	0.3 %
Cleveland-Cliffs Inc	(1,333 )	(80,795 )	(927 )	0.3 %
Macy's Inc	(1,836 )	(80,783 )	(927 )	0.3 %
Affirm Holdings Inc	(1,268 )	(80,646 )	(925 )	0.3 %
Liberty Media Corp-Liberty Live	(701 )	(80,637 )	(925 )	0.3 %
Other Securities	(241,953 )	(26,377,210 )	(302,603 )	85.0 %
		$(30,496,936 )	$(349,866 )
Accrued Net Interest Receivable/(Payable)			4,614
			$(345,252 )
JPNBLQGS
Jabil Inc	(5,340 )	$(1,942,431 )	$(56,965 )	3.2 %
Sprouts Farmers Market Inc	(11,752 )	(1,462,860 )	(42,899 )	2.4 %
Palo Alto Networks Inc	(1,905 )	(1,371,639 )	(40,224 )	2.2 %
Take-Two Interactive Software Inc	(3,220 )	(1,275,704 )	(37,411 )	2.1 %
Performance Food Group Co	(6,743 )	(1,153,743 )	(33,834 )	1.9 %
Pure Storage Inc	(11,486 )	(1,150,400 )	(33,736 )	1.9 %
GoDaddy Inc	(5,086 )	(1,103,253 )	(32,354 )	1.8 %
Dropbox Inc	(13,451 )	(1,047,923 )	(30,731 )	1.7 %

See Notes to Consolidated Financial Statements

28

Consolidated Schedule of Investments Long Short Fund^  (cont’d)

Reference Entity	Shares	Notional Amount	Unrealized Appreciation/ (Depreciation)	Component Weighting
JPNBLQGS (cont’d)
Nutanix Inc	(9,562 )	$(1,025,086 )	$(30,061 )	1.7 %
Microchip Technology Inc	(4,069 )	(859,212 )	(25,197 )	1.4 %
Coty Inc	(29,380 )	(815,510 )	(23,915 )	1.3 %
Monolithic Power Systems Inc	(619 )	(809,623 )	(23,743 )	1.3 %
New York Times Co/The	(6,653 )	(794,433 )	(23,297 )	1.3 %
Cencora Inc	(1,445 )	(792,415 )	(23,238 )	1.3 %
NXP Semiconductors NV	(1,545 )	(789,249 )	(23,145 )	1.3 %
Electronic Arts Inc	(1,967 )	(721,222 )	(21,150 )	1.2 %
Palantir Technologies Inc	(16,444 )	(720,945 )	(21,142 )	1.2 %
Crowdstrike Holdings Inc	(1,373 )	(719,105 )	(21,088 )	1.2 %
MongoDB Inc	(691 )	(705,679 )	(20,694 )	1.1 %
Dynatrace Inc	(5,322 )	(704,809 )	(20,669 )	1.1 %
Murphy USA Inc	(651 )	(699,363 )	(20,509 )	1.1 %
Trade Desk Inc/The	(3,288 )	(691,151 )	(20,268 )	1.1 %
F5 Inc	(1,436 )	(645,000 )	(18,915 )	1.0 %
Marvell Technology Inc	(4,547 )	(636,022 )	(18,652 )	1.0 %
Maximus Inc	(2,837 )	(627,888 )	(18,413 )	1.0 %
Live Nation Entertainment Inc	(2,647 )	(627,489 )	(18,401 )	1.0 %
HubSpot Inc	(456 )	(572,320 )	(16,784 )	0.9 %
StoneCo Ltd	(19,369 )	(568,895 )	(16,683 )	0.9 %
Seagen Inc	(901 )	(567,790 )	(16,651 )	0.9 %
Pinterest Inc	(5,911 )	(523,222 )	(15,344 )	0.8 %
RenaissanceRe Holdings Ltd	(794 )	(516,518 )	(15,147 )	0.8 %
Wix.com Ltd	(2,141 )	(506,856 )	(14,864 )	0.8 %
Molina Healthcare Inc	(512 )	(505,189 )	(14,815 )	0.8 %
PulteGroup Inc	(2,261 )	(492,893 )	(14,454 )	0.8 %
Elastic NV	(2,189 )	(486,652 )	(14,271 )	0.8 %
Taylor Morrison Home Corp	(4,146 )	(470,691 )	(13,803 )	0.8 %
Zscaler Inc	(996 )	(468,443 )	(13,737 )	0.8 %
Las Vegas Sands Corp	(3,323 )	(467,246 )	(13,702 )	0.8 %
Group 1 Automotive Inc	(624 )	(466,647 )	(13,685 )	0.8 %
Datadog Inc	(1,915 )	(462,096 )	(13,551 )	0.8 %
Silicon Laboratories Inc	(1,677 )	(457,978 )	(13,430 )	0.7 %
Coherent Corp	(4,992 )	(437,731 )	(12,837 )	0.7 %
Booking Holdings Inc	(53 )	(433,885 )	(12,724 )	0.7 %
Texas Roadhouse Inc	(1,439 )	(432,785 )	(12,692 )	0.7 %
Centene Corp	(2,089 )	(426,855 )	(12,518 )	0.7 %
Lumentum Holdings Inc	(3,636 )	(422,279 )	(12,384 )	0.7 %
Hyatt Hotels Corp	(1,388 )	(421,291 )	(12,355 )	0.7 %
Light & Wonder Inc	(1,933 )	(418,680 )	(12,278 )	0.7 %
Snowflake Inc	(972 )	(417,784 )	(12,252 )	0.7 %
Patterson Cos Inc	(4,623 )	(417,137 )	(12,233 )	0.7 %
Other Securities	(318,436 )	(26,306,680 )	(771,458 )	42.7 %
		$(61,560,697 )	$(1,805,303 )
Accrued Net Interest Receivable/(Payable)			142,234
			$(1,663,069 )

See Notes to Consolidated Financial Statements

29

Consolidated Schedule of Investments Long Short Fund^  (cont’d)

Reference Entity	Shares	Notional Amount	Unrealized Appreciation/ (Depreciation)	Component Weighting
JPNBLQGS
Jabil Inc	(1,115 )	$(405,597 )	$(6,413 )	3.2 %
Sprouts Farmers Market Inc	(2,454 )	(305,459 )	(4,830 )	2.4 %
Palo Alto Networks Inc	(398 )	(286,411 )	(4,528 )	2.2 %
Take-Two Interactive Software Inc	(672 )	(266,379 )	(4,212 )	2.1 %
Performance Food Group Co	(1,408 )	(240,912 )	(3,809 )	1.9 %
Pure Storage Inc	(2,398 )	(240,214 )	(3,798 )	1.9 %
GoDaddy Inc	(1,062 )	(230,369 )	(3,642 )	1.8 %
Dropbox Inc	(2,809 )	(218,816 )	(3,460 )	1.7 %
Nutanix Inc	(1,997 )	(214,047 )	(3,384 )	1.7 %
Microchip Technology Inc	(850 )	(179,411 )	(2,837 )	1.4 %
Coty Inc	(6,135 )	(170,286 )	(2,692 )	1.3 %
Monolithic Power Systems Inc	(129 )	(169,057 )	(2,673 )	1.3 %
New York Times Co/The	(1,389 )	(165,885 )	(2,623 )	1.3 %
Cencora Inc	(302 )	(165,464 )	(2,616 )	1.3 %
NXP Semiconductors NV	(323 )	(164,802 )	(2,606 )	1.3 %
Electronic Arts Inc	(411 )	(150,598 )	(2,381 )	1.2 %
Palantir Technologies Inc	(3,434 )	(150,540 )	(2,380 )	1.2 %
Crowdstrike Holdings Inc	(287 )	(150,156 )	(2,374 )	1.2 %
MongoDB Inc	(144 )	(147,352 )	(2,330 )	1.1 %
Dynatrace Inc	(1,111 )	(147,171 )	(2,327 )	1.1 %
Murphy USA Inc	(136 )	(146,033 )	(2,309 )	1.1 %
Trade Desk Inc/The	(687 )	(144,319 )	(2,282 )	1.1 %
F5 Inc	(300 )	(134,682 )	(2,129 )	1.0 %
Marvell Technology Inc	(949 )	(132,807 )	(2,100 )	1.0 %
Maximus Inc	(592 )	(131,109 )	(2,073 )	1.0 %
Live Nation Entertainment Inc	(553 )	(131,025 )	(2,072 )	1.0 %
HubSpot Inc	(95 )	(119,506 )	(1,890 )	0.9 %
StoneCo Ltd	(4,044 )	(118,790 )	(1,878 )	0.9 %
Seagen Inc	(188 )	(118,560 )	(1,875 )	0.9 %
Pinterest Inc	(1,234 )	(109,253 )	(1,727 )	0.8 %
RenaissanceRe Holdings Ltd	(166 )	(107,854 )	(1,705 )	0.8 %
Wix.com Ltd	(447 )	(105,836 )	(1,673 )	0.8 %
Molina Healthcare Inc	(107 )	(105,488 )	(1,668 )	0.8 %
PulteGroup Inc	(472 )	(102,921 )	(1,627 )	0.8 %
Elastic NV	(457 )	(101,617 )	(1,607 )	0.8 %
Taylor Morrison Home Corp	(866 )	(98,285 )	(1,554 )	0.8 %
Zscaler Inc	(208 )	(97,815 )	(1,547 )	0.8 %
Las Vegas Sands Corp	(694 )	(97,565 )	(1,543 )	0.8 %
Group 1 Automotive Inc	(130 )	(97,440 )	(1,541 )	0.8 %
Datadog Inc	(400 )	(96,490 )	(1,526 )	0.8 %
Silicon Laboratories Inc	(350 )	(95,630 )	(1,512 )	0.7 %
Coherent Corp	(1,042 )	(91,402 )	(1,445 )	0.7 %
Booking Holdings Inc	(11 )	(90,599 )	(1,432 )	0.7 %
Texas Roadhouse Inc	(300 )	(90,369 )	(1,429 )	0.7 %
Centene Corp	(436 )	(89,131 )	(1,409 )	0.7 %
Lumentum Holdings Inc	(759 )	(88,176 )	(1,394 )	0.7 %

See Notes to Consolidated Financial Statements

30

Consolidated Schedule of Investments Long Short Fund^  (cont’d)

Reference Entity	Shares	Notional Amount	Unrealized Appreciation/ (Depreciation)	Component Weighting
JPNBLQGS (cont’d)
Hyatt Hotels Corp	(290 )	$(87,969 )	$(1,391 )	0.7 %
Light & Wonder Inc	(404 )	(87,424 )	(1,382 )	0.7 %
Snowflake Inc	(203 )	(87,237 )	(1,379 )	0.7 %
Patterson Cos Inc	(965 )	(87,102 )	(1,377 )	0.7 %
Other Securities	(66,493 )	(5,493,075 )	(86,851 )	42.7 %
		$(12,854,435 )	$(203,242 )
Accrued Net Interest Receivable/(Payable)			30,113
			$(173,129 )
JPNBLQGS
Jabil Inc	(1,115 )	$(405,601 )	$(2,348 )	3.2 %
Sprouts Farmers Market Inc	(2,454 )	(305,461 )	(1,769 )	2.4 %
Palo Alto Networks Inc	(398 )	(286,413 )	(1,658 )	2.2 %
Take-Two Interactive Software Inc	(672 )	(266,381 )	(1,542 )	2.1 %
Performance Food Group Co	(1,408 )	(240,914 )	(1,395 )	1.9 %
Pure Storage Inc	(2,398 )	(240,216 )	(1,391 )	1.9 %
GoDaddy Inc	(1,062 )	(230,371 )	(1,334 )	1.8 %
Dropbox Inc	(2,809 )	(218,818 )	(1,267 )	1.7 %
Nutanix Inc	(1,997 )	(214,049 )	(1,239 )	1.7 %
Microchip Technology Inc	(850 )	(179,413 )	(1,039 )	1.4 %
Coty Inc	(6,135 )	(170,287 )	(986 )	1.3 %
Monolithic Power Systems Inc	(129 )	(169,058 )	(979 )	1.3 %
New York Times Co/The	(1,389 )	(165,886 )	(961 )	1.3 %
Cencora Inc	(302 )	(165,465 )	(958 )	1.3 %
NXP Semiconductors NV	(323 )	(164,804 )	(954 )	1.3 %
Electronic Arts Inc	(411 )	(150,599 )	(872 )	1.2 %
Palantir Technologies Inc	(3,434 )	(150,541 )	(872 )	1.2 %
Crowdstrike Holdings Inc	(287 )	(150,157 )	(869 )	1.2 %
MongoDB Inc	(144 )	(147,353 )	(853 )	1.1 %
Dynatrace Inc	(1,111 )	(147,172 )	(852 )	1.1 %
Murphy USA Inc	(136 )	(146,035 )	(846 )	1.1 %
Trade Desk Inc/The	(687 )	(144,320 )	(836 )	1.1 %
F5 Inc	(300 )	(134,683 )	(780 )	1.0 %
Marvell Technology Inc	(949 )	(132,808 )	(769 )	1.0 %
Maximus Inc	(592 )	(131,110 )	(759 )	1.0 %
Live Nation Entertainment Inc	(553 )	(131,027 )	(759 )	1.0 %
HubSpot Inc	(95 )	(119,507 )	(692 )	0.9 %
StoneCo Ltd	(4,044 )	(118,791 )	(688 )	0.9 %
Seagen Inc	(188 )	(118,561 )	(686 )	0.9 %
Pinterest Inc	(1,234 )	(109,254 )	(633 )	0.8 %
RenaissanceRe Holdings Ltd	(166 )	(107,855 )	(624 )	0.8 %
Wix.com Ltd	(447 )	(105,837 )	(613 )	0.8 %
Molina Healthcare Inc	(107 )	(105,489 )	(611 )	0.8 %
PulteGroup Inc	(472 )	(102,921 )	(596 )	0.8 %
Elastic NV	(457 )	(101,618 )	(588 )	0.8 %
Taylor Morrison Home Corp	(866 )	(98,285 )	(569 )	0.8 %
Zscaler Inc	(208 )	(97,816 )	(566 )	0.8 %

See Notes to Consolidated Financial Statements

31

Consolidated Schedule of Investments Long Short Fund^  (cont’d)

Reference Entity	Shares	Notional Amount	Unrealized Appreciation/ (Depreciation)	Component Weighting
JPNBLQGS (cont’d)
Las Vegas Sands Corp	(694 )	$(97,566 )	$(565 )	0.8 %
Group 1 Automotive Inc	(130 )	(97,441 )	(564 )	0.8 %
Datadog Inc	(400 )	(96,491 )	(559 )	0.8 %
Silicon Laboratories Inc	(350 )	(95,631 )	(554 )	0.7 %
Coherent Corp	(1,042 )	(91,403 )	(529 )	0.7 %
Booking Holdings Inc	(11 )	(90,600 )	(525 )	0.7 %
Texas Roadhouse Inc	(300 )	(90,370 )	(523 )	0.7 %
Centene Corp	(436 )	(89,132 )	(516 )	0.7 %
Lumentum Holdings Inc	(759 )	(88,177 )	(511 )	0.7 %
Hyatt Hotels Corp	(290 )	(87,970 )	(509 )	0.7 %
Light & Wonder Inc	(404 )	(87,425 )	(506 )	0.7 %
Snowflake Inc	(203 )	(87,238 )	(505 )	0.7 %
Patterson Cos Inc	(965 )	(87,103 )	(504 )	0.7 %
Other Securities	(66,494 )	(5,493,126 )	(31,807 )	42.7 %
		$(12,854,549 )	$(74,430 )
Accrued Net Interest Receivable/(Payable)			30,420
			$(44,010 )
Total Return Basket Swaps, at Value			$(17,785,417 )

 

(b)	The Fund receives a specified rate based on a reference rate plus or minus a spread, and pays the total return on the reference entity. The cash flows may be denominated in various foreign currencies based on the local currencies of the positions within the swaps.
(c)	Effective rate at October 31, 2023.

Total return swap contracts ("total return swaps")

At October 31, 2023, the Fund had outstanding over-the-counter total return swaps as follows: 

Over-the-counter total return swaps—Short(a)

 

Counterparty	Reference Entity	Notional Amount		Maturity Date	Variable Rate(b)	Spread	Reference Rate	Frequency of Fund Receipt/ Payment	Unrealized Appreciation/ (Depreciation)	Accrued Net Interest Receivable/ (Payable)	Value
JPM	S&P 500 Equal Weight Total Return Index	USD	(126,606,584 )	11/4/2023	5.47%	0.15%	OBFR	1M/T	$11,915,560	$337,108	$12,252,668
JPM	S&P Retail Select Industry Index	USD	(2,842,541 )	11/19/2024	4.57%	(0.75 )%	OBFR	1M/T	173,891	6,134	180,025
JPM	S&P Retail Select Industry Index	USD	(6,595,439 )	11/19/2024	4.57%	(0.75 )%	OBFR	1M/T	909,757	15,263	925,020
JPM	S&P Retail Select Industry Index	USD	(26,555,155 )	11/19/2024	4.57%	(0.75 )%	OBFR	1M/T	3,598,619	71,179	3,669,798

See Notes to Consolidated Financial Statements

32

Consolidated Schedule of Investments Long Short Fund^  (cont’d)

Counterparty	Reference Entity	Notional Amount		Maturity Date	Variable Rate(b)	Spread	Reference Rate	Frequency of Fund Receipt/ Payment	Unrealized Appreciation/ (Depreciation)	Accrued Net Interest Receivable/ (Payable)	Value
JPM	S&P Retail Select Industry Index	USD	(42,260,350 )	11/19/2024	4.57%	(0.75 )%	OBFR	1M/T	$509,731	$86,977	$596,708
Total									$17,107,558	$516,661	$17,624,219

 

(a)	The Fund receives a specified rate based on a reference rate plus or minus a spread, and pays the total return on the reference entity.
(b)	Effective rate at October 31, 2023.

For the year ended October 31, 2023, the average notional value for the months where the Fund had total return basket swaps and total return swaps, including contracts for difference, for the Fund was $(627,288,714) for short positions.

At October 31, 2023, the Fund had cash collateral of $1,220,000, $17,380,000 and $70,680,000 deposited in segregated accounts for Citibank, N.A., Goldman Sachs International and JPMorgan Chase Bank N.A., respectively, to cover collateral requirements on over-the-counter derivatives. 

Contracts for Difference

 

Counterparty	Number of Units	Reference Entity	Notional Amount		Frequency of Fund Receipt/ Payment	Maturity Date	Unrealized Appreciation/ (Depreciation)	Accrued Net Interest Receivable/ (Payable)	Value
CITI	(200,000)	Birkenstock Holding PLC	USD	(7,814,000)	1M/T	4/11/2025	$(246,657 )	$(25,700 )	$(272,357 )

The Fund receives a rate based on SOFR less a 10.75% spread.

Purchased option contracts ("options purchased")

At October 31, 2023, the Fund did not have any open positions in options purchased.

Written option contracts ("options written")

At October 31, 2023, the Fund did not have any open positions in options written.

For the year ended October 31, 2023, the average market value for the months where the Fund had options purchased and options written outstanding was $675,471 and $(2,652,811), respectively.

See Notes to Consolidated Financial Statements

33

Consolidated Schedule of Investments Long Short Fund^  (cont’d)

The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s investments as of October 31, 2023: 

Asset Valuation Inputs	Level 1	Level 2	Level 3(a)	Total
Investments:
Common Stocks
Software	$693,547,100	$—	$7,059,167	$700,606,267
Specialty Retail	252,934,135	—	160,728,853	413,662,988
Other Common Stocks#	3,547,093,826	—	—	3,547,093,826
Total Common Stocks	4,493,575,061	—	167,788,020	4,661,363,081
Preferred Stocks#	—	—	54,548,102	54,548,102
Master Limited Partnerships and Limited Partnerships#	135,862,591	—	—	135,862,591
Corporate Bonds
Miscellaneous Manufacturer	—	25,714,536	13,275,131	38,989,667
Other Corporate Bonds#	—	169,795,678	—	169,795,678
Total Corporate Bonds	—	195,510,214	13,275,131	208,785,345
Convertible Bonds#	—	—	20,514,975	20,514,975
Warrants#	—	—	3,443,070	3,443,070
Short-Term Investments	—	585,706,863	—	585,706,863
Total Investments	$4,629,437,652	$781,217,077	$259,569,298	$5,670,224,027

 

#	The Consolidated Schedule of Investments provides information on the industry or sector categorization.
(a)	The following is a reconciliation between the beginning and ending balances of investments in which  significant unobservable inputs (Level 3) were used in determining value:

 

(000's omitted)	Beginning balance as of 11/1/2022	Accrued discounts/ (premiums)	Realized gain/(loss)	Change in unrealized appreciation/ (depreciation)	Purchases	Sales	Transfers into Level 3	Transfers out of Level 3	Balance as of 10/31/2023	Net change in unrealized appreciation/ (depreciation) from investments still held as of 10/31/2023
Investments in Securities:
Common Stocks(1)	$162,951	$—	$3,619	$7,140	$—	$(5,922 )	$—	$—	$167,788	$8,082
Preferred Stocks(1)	57,339	—	—	(2,791 )	—	—	—	—	54,548	(2,791 )
Corporate Bonds(1)	—	1,247	—	(6,821 )	1,876	—	16,973	—	13,275	(6,821 )
Loan Assignments(2)	20,400	12	714	(626 )	—	(20,500 )	—	—	—	—
Convertible Bonds(1)	19,850	—	—	665	—	—	—	—	20,515	665
Warrants(3)	2,868	—	—	575	—	—	—	—	3,443	575
Total	$263,408	$1,259	$4,333	$(1,858 )	$1,876	$(26,422 )	$16,973	$—	$259,569	$(290 )
(1) Quantitative Information about Level 3 Fair Value Measurements:

 

Investment type	Fair value at 10/31/2023	Valuation approach	Significant unobservable input(s)	Input value/ range	Weighted average(a)	Impact to valuation from increase in input(b)
Common Stocks	$167,788,019	Market Approach	Enterprise value Revenue multiple(c) (EV/Revenue)	4.4x - 11.9x	4.7x	Increase

See Notes to Consolidated Financial Statements

34

Consolidated Schedule of Investments Long Short Fund^  (cont’d)

			Discount rate	4.9 - 5.1%	5.0%	Decrease
			Term (Years)	2.12 - 3.2	2.6	Decrease
			Expected Volatility	65 - 80%	73.2	Decrease
Preferred Stocks	$441,157	Market Approach	Transaction Price	$0.46	$0.46	Increase
Preferred Stocks	49,495,496	Market Approach	Enterprise value Revenue multiple(c) (EV/Revenue)	0.8x - 10.5x	4.3x	Increase
			Discount Rate	0.3 - 5.4%	5.0%	Decrease
			Term (Years)	1.2 - 3.2	1.5	Decrease
			Expected Volatility	55 - 70%	61.2%	Decrease
Preferred Units	4,611,449	Market Approach	Enterprise value Revenue multiple(c) (EV/Revenue)	2.5x	2.5x	Increase
			Discount Rate	4.9%	4.9%	Decrease
			Term (Years)	3.3	3.3	Decrease
			Expected Volatility	20.0%	20.0%	Decrease
Convertible Bonds	20,514,975	Income Approach	Credit Yield Spread	4.9%	4.9%	Decrease
Corporate Bonds	13,275,131	Market Approach	Estimated Recovery Value (of Par Value)	69.0%	69.0%	Increase
(a) The weighted averages disclosed in the table above were weighted by relative fair value.
(b) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase or decrease in the corresponding input. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
(c) Represents amounts used when the reporting entity has determined that market participants would use such multiples when pricing the investments.

 

(2) At the beginning of the period, these investments were valued in accordance with the procedures

approved by the valuation designee.

(3) At October 31, 2023, these investments were valued in accordance with procedures approved by the

valuation designee. These investments did not have a material impact on the Fund’s net assets and,

therefore, disclosure of significant unobservable inputs used in formulating valuations is not

presented.

The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s short investments as of October 31, 2023: 

Liability Valuation Inputs	Level 1	Level 2	Level 3	Total
Investments:
Common Stocks Sold Short#	$(896,990,371 )	$—	$—	$(896,990,371 )
Corporate Bonds Sold Short#	—	(41,279,239 )	—	(41,279,239 )
Total Short Positions	$(896,990,371 )	$(41,279,239 )	$—	$(938,269,610 )

 

# The Consolidated Schedule of Investments provides information on the industry or sector categorization.

See Notes to Consolidated Financial Statements

35

Consolidated Schedule of Investments Long Short Fund^  (cont’d)

The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s derivatives as of October 31, 2023: 

Other Financial Instruments	Level 1	Level 2	Level 3	Total
Futures@
Assets	$69,294,685	$—	$—	$69,294,685
Swaps
Assets	—	19,409,442	—	19,409,442
Liabilities	—	(19,842,997 )	—	(19,842,997 )
Total	$69,294,685	$(433,555 )	$—	$68,861,130

 

@ Futures are reported at the cumulative unrealized appreciation/(depreciation) of the instrument.

 

^

A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.

See Notes to Consolidated Financial Statements

36

Schedule of Investments U.S. Equity Index PutWrite Strategy Fund^ October 31, 2023

 

Principal Amount		Value
U.S. Treasury Obligations 96.9%
	U.S. Treasury Notes
$111,900,000	0.13%, due 12/15/2023	$111,191,437
214,200,000	0.25%, due 3/15/2024 - 6/15/2024	208,670,516
83,100,000	0.38%, due 9/15/2024	79,506,574
53,100,000	3.50%, due 9/15/2025	51,573,375
Total U.S. Treasury Obligations (Cost $451,934,989)		450,941,902
Number of Shares
Short-Term Investments 4.5%
Investment Companies 4.5%
20,675,270	State Street Institutional U.S. Government Money Market Fund Premier Class, 5.30%(a) (Cost $20,675,270)	20,675,270
Total Investments 101.4% (Cost $472,610,259)		471,617,172
Liabilities Less Other Assets (1.4)%		(6,305,924 )(b)
Net Assets 100.0%		$465,311,248

 

(a)	Represents 7-day effective yield as of October 31, 2023.
(b)	Includes the impact of the Fund's open positions in derivatives at October 31, 2023.

See Notes to Financial Statements

37

Schedule of Investments U.S. Equity Index PutWrite Strategy Fund^  (cont’d)

Derivative Instruments

Written option contracts ("options written")

At October 31, 2023, the Fund had outstanding options written as follows: 

Description	Number of Contracts	Notional Amount	Exercise Price	Expiration Date	Value
Puts
Index
S&P 500 Index	69	$(28,937,220)	$4,130	11/3/2023	$(81,765)
S&P 500 Index	122	(51,164,360)	4,150	11/3/2023	(206,790)
S&P 500 Index	6	(2,516,280)	4,220	11/3/2023	(29,100)
S&P 500 Index	3	(1,258,140)	4,235	11/3/2023	(17,475)
S&P 500 Index	16	(6,710,080)	4,270	11/3/2023	(136,480)
S&P 500 Index	13	(5,451,940)	4,280	11/3/2023	(122,005)
S&P 500 Index	10	(4,193,800)	4,310	11/3/2023	(121,350)
S&P 500 Index	86	(36,066,680)	4,130	11/10/2023	(225,320)
S&P 500 Index	7	(2,935,660)	4,145	11/10/2023	(21,350)
S&P 500 Index	94	(39,421,720)	4,150	11/10/2023	(301,270)
S&P 500 Index	11	(4,613,180)	4,310	11/10/2023	(137,390)
S&P 500 Index	73	(30,614,740)	4,325	11/10/2023	(1,005,210)
S&P 500 Index	6	(2,516,280)	4,330	11/10/2023	(85,200)
S&P 500 Index	1	(419,380)	4,150	11/17/2023	(4,345)
S&P 500 Index	4	(1,677,520)	4,225	11/17/2023	(30,080)
S&P 500 Index	246	(103,167,480)	4,235	11/17/2023	(1,982,760)
S&P 500 Index	1	(419,380)	4,240	11/17/2023	(8,340)
S&P 500 Index	32	(13,420,160)	4,280	11/17/2023	(347,040)
S&P 500 Index	98	(41,099,240)	4,135	11/24/2023	(457,170)
S&P 500 Index	96	(40,260,480)	4,150	11/24/2023	(492,960)
S&P 500 Index	77	(32,292,260)	4,185	11/24/2023	(494,340)
S&P 500 Index	16	(6,710,080)	4,225	11/24/2023	(131,680)
S&P 500 Index	36	(15,097,680)	4,140	12/1/2023	(202,860)
S&P 500 Index	3	(1,258,140)	4,185	12/1/2023	(21,720)
Total options written (premium received $7,516,133)					$(6,664,000)

For the year ended October 31, 2023, the average market value for the months where the Fund had options written outstanding was $(4,920,933).

The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s investments as of October 31, 2023: 

Asset Valuation Inputs	Level 1	Level 2	Level 3	Total
Investments:
U.S. Treasury Obligations	$—	$450,941,902	$—	$450,941,902
Short-Term Investments	—	20,675,270	—	20,675,270
Total Investments	$—	$471,617,172	$—	$471,617,172

See Notes to Financial Statements

38

Schedule of Investments U.S. Equity Index PutWrite Strategy Fund^  (cont’d)

The following is a summary, categorized by Level (see Note A of the Notes to Financial Statements), of inputs used to value the Fund’s derivatives as of October 31, 2023: 

Other Financial Instruments	Level 1	Level 2	Level 3	Total
Options Written
Liabilities	$(6,664,000 )	$—	$—	$(6,664,000 )
Total	$(6,664,000 )	$—	$—	$(6,664,000 )

 

^

A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.

See Notes to Financial Statements

39

Statements of Assets and Liabilities

Neuberger Berman Alternative Funds 

	Long Short Fund**	U.S. Equity Index PutWrite Strategy Fund
	October 31, 2023	October 31, 2023
Assets
Investments in securities, at value*† (Note A)— see Schedule of Investments:
Unaffiliated issuers(a)	$5,670,224,027	$471,617,172
Foreign currency(b)	28	—
Cash collateral segregated for short sales (Note A)	1,200,921,872	—
Cash collateral segregated for over-the-counter derivatives (Note A)	89,280,000	—
Dividends and interest receivable	11,467,798	620,586
Receivable for securities sold	72,994,268	21,665
Receivable for accumulated variation margin on futures contracts (Note A)	69,294,685	—
Receivable for Fund shares sold	5,102,408	291,189
Receivable for securities lending income (Note A)	33,138	—
Over-the-counter swap contracts, at value (Note A)	19,409,442	—
Prepaid expenses and other assets	123,373	53,586
Total Assets	7,138,851,039	472,604,198
Liabilities
Investments sold short, at value(c) (Note A)	938,269,610	—
Over-the-counter swap contracts, at value (Note A)	19,842,997	—
Dividends and interest payable for short sales	1,189,914	—
Cash collateral segregated for futures contracts due to broker (Note A)	19,137,744	—
Payable to investment manager (Note B)	5,634,802	182,031
Option contracts written, at value(d) (Note A)	—	6,664,000
Due to custodian	410	—
Payable for securities purchased	27,938,993	119,901
Payable for Fund shares redeemed	6,181,740	179,119
Payable to administrator—net (Note B)	865,810	12,122
Payable to trustees	3,367	3,367
Payable for cash collateral on loaned securities (Note A)	1,942,407	—
Other accrued expenses and payables	560,353	132,410
Total Liabilities	1,021,568,147	7,292,950
Net Assets	$6,117,282,892	$465,311,248

See Notes to Financial Statements

40

Statements of Assets and Liabilities  (cont’d)

Neuberger Berman Alternative Funds

	Long Short Fund**	U.S. Equity Index PutWrite Strategy Fund
	October 31, 2023	October 31, 2023
Net Assets consist of:
Paid-in capital	$5,087,827,493	$524,797,024
Total distributable earnings/(losses)	1,029,455,399	(59,485,776 )
Net Assets	$6,117,282,892	$465,311,248
Net Assets
Institutional Class	$5,937,860,662	$317,124,209
Class A	134,330,321	—
Class C	45,091,909	—
Class R6	—	148,187,039
Shares Outstanding ($.001 par value; unlimited shares authorized)
Institutional Class	352,579,090	30,294,258
Class A	8,093,083	—
Class C	2,818,700	—
Class R6	—	14,134,884
Net Asset Value, offering and redemption price per share
Institutional Class	$16.84	$10.47
Class R6	—	10.48
Net Asset Value and redemption price per share
Class A	$16.60	$—
Offering Price per share
Class A‡	$17.61	$—
Net Asset Value and offering price per share
Class C^	$16.00	$—
†Securities on loan, at value:
Unaffiliated issuers	$18,305,569	$—
*Cost of Investments:
(a) Unaffiliated issuers	$4,689,558,031	$472,610,259
(b) Total cost of foreign currency	$29	$—
(c) Proceeds from investments sold short	$999,182,758	$—
(d) Premium received from option contracts written	$—	$7,516,133

 

**	Consolidated financial statement, see Note A of the Notes to Financial Statements for additional information.
‡	On single retail sales of less than $50,000. On sales of $50,000 or more or in certain other circumstances described in the Fund's prospectus, offering price is reduced.
^	Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

See Notes to Financial Statements

41

Statements of Operations 

Neuberger Berman Alternative Funds 

	Long Short Fund**	U.S. Equity Index PutWrite Strategy Fund
	For the Fiscal Year Ended October 31, 2023	For the Fiscal Year Ended October 31, 2023
Investment Income:
Income (Note A):
Dividend income—unaffiliated issuers	$64,099,858	$—
Interest and other income—unaffiliated issuers	75,640,561	28,969,191
Income from securities loaned—net	213,716	—
Foreign taxes withheld	(646,668 )	—
Total income	$139,307,467	$28,969,191
Expenses:
Investment management fees (Note B)	62,873,867	2,113,403
Administration fees (Note B):
Institutional Class	8,430,613	457,774
Class A	339,587	14,788
Class C	120,880	2,620
Class R6	—	78,846
Distribution fees (Note B):
Class A	326,526	14,219
Class C	464,922	10,075
Shareholder servicing agent fees:
Institutional Class	41,022	2,057
Class A	12,744	949
Class C	1,899	444
Class R6	—	2,605
Audit fees	67,108	47,415
Subsidiary administration fees	2,530	—
Custodian and accounting fees	951,057	99,852
Insurance	125,887	12,695
Legal fees	96,100	98,784
Registration and filing fees	259,232	119,898
Shareholder reports	272,563	16,016
Trustees' fees and expenses	58,004	47,080
Dividend and interest expense on securities sold short (Note A)	650,277	—
Interest	52,218	—
Miscellaneous and other fees (Note A)	318,420	45,687
Total expenses	75,465,456	3,185,207
Expenses reimbursed by Management (Note B)	—	(237,014 )
Fees waived (Note B)	—	(6,178 )
Total net expenses	75,465,456	2,942,015
Net investment income/(loss)	$63,842,011	$26,027,176

See Notes to Financial Statements

42

Statements of Operations   (cont’d)

Neuberger Berman Alternative Funds

	Long Short Fund**	U.S. Equity Index PutWrite Strategy Fund
	For the Fiscal Year Ended October 31, 2023	For the Fiscal Year Ended October 31, 2023
Realized and Unrealized Gain/(Loss) on Investments (Note A):
Net realized gain/(loss) on:
Transactions in investment securities of unaffiliated issuers	1,124,154	(37,887,415 )
Closed short positions of unaffiliated issuers	57,673,930	—
Settlement of foreign currency transactions	(217,858 )	—
Expiration or closing of futures contracts	(97,657,260 )	—
Expiration or closing of option contracts written	7,806,795	38,694,173
Expiration or closing of swap contracts	29,602,252	—
Change in net unrealized appreciation/(depreciation) in value of:
Investment securities of unaffiliated issuers	447,056,671	29,870,274
Short positions of unaffiliated issuers	8,717,260	—
Foreign currency translations	(1 )	—
Futures contracts	58,355,307	—
Option contracts written	(421,456 )	(5,429,295 )
Swap contracts	(60,015,477 )	—
Net gain/(loss) on investments	452,024,317	25,247,737
Net increase/(decrease) in net assets resulting from operations	$515,866,328	$51,274,913

 

** Consolidated financial statement, see Note A of the Notes to Financial Statements for additional information.

See Notes to Financial Statements

43

Statements of Changes in Net Assets

Neuberger Berman Alternative Funds 

	Long Short Fund**		U.S. Equity Index PutWrite Strategy Fund
	Fiscal Year Ended	Fiscal Year Ended	Fiscal Year Ended	Fiscal Year Ended
	October 31, 2023	October 31, 2022	October 31, 2023	October 31, 2022
Increase/(Decrease) in Net Assets:
From Operations (Note A):
Net investment income/(loss)	$63,842,011	$(8,706,089 )	$26,027,176	$15,386,028
Net realized gain/(loss) on investments	(1,667,987 )	175,769,447	806,758	(56,840,296 )
Change in net unrealized appreciation/(depreciation) of investments	453,692,304	(648,771,623 )	24,440,979	(27,862,670 )
Net increase/(decrease) in net assets resulting from operations	515,866,328	(481,708,265 )	51,274,913	(69,316,938 )
Distributions to Shareholders From (Note A):
Distributable earnings:
Institutional Class	(344,559,524 )	(58,747,314 )	(18,273,823 )	(56,601,926 )
Class A	(7,888,772 )	(1,833,237 )	(264,159 )	(1,172,489 )
Class C	(2,781,547 )	(648,991 )	(40,785 )	(230,526 )
Class R6	—	—	(9,153,591 )	(40,900,866 )
Tax return of capital:
Institutional Class	—	—	(410,551 )	—
Class R6	—	—	(212,127 )	—
Total distributions to shareholders	(355,229,843 )	(61,229,542 )	(28,355,036 )	(98,905,807 )
From Fund Share Transactions (Note D):
Proceeds from shares sold:
Institutional Class	2,150,674,766	2,114,312,072	92,467,048	152,756,777
Class A	41,745,169	42,591,945	3,530,220	1,861,678
Class C	6,352,767	10,570,949	120,653	409,657
Class R6	—	—	60,530,697	209,992,962
Proceeds from reinvestment of dividends and distributions:
Institutional Class	216,333,571	34,762,818	18,657,876	56,380,397
Class A	6,370,453	1,404,540	260,171	1,168,207
Class C	2,035,050	485,715	37,371	207,025
Class R6	—	—	9,307,299	40,668,463
Payments for shares redeemed:
Institutional Class	(2,020,071,560 )	(1,385,167,617 )	(100,698,979 )	(108,953,600 )
Class A	(49,139,428 )	(54,870,397 )	(9,670,216 )	(1,564,391 )
Class C	(12,282,914 )	(14,119,805 )	(1,548,537 )	(118,334 )
Class R6	—	—	(97,343,754 )	(213,750,276 )
Net increase/(decrease) from Fund share transactions	342,017,874	749,970,220	(24,350,151 )	139,058,565
Net Increase/(Decrease) in Net Assets	502,654,359	207,032,413	(1,430,274 )	(29,164,180 )
Net Assets:
Beginning of year	5,614,628,533	5,407,596,120	466,741,522	495,905,702
End of year	$6,117,282,892	$5,614,628,533	$465,311,248	$466,741,522

 

** Consolidated financial statement, see Note A of the Notes to Financial Statements for additional information.

See Notes to Financial Statements

44

Notes to Financial Statements Alternative Fundsß

Note A—Summary of Significant Accounting Policies:

1

General: Neuberger Berman Alternative Funds (the "Trust") is a Delaware statutory trust organized pursuant to an Amended and Restated Trust Instrument dated March 27, 2014.The Trust is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the "1940 Act"), and its shares are registered under the Securities Act of 1933, as amended.Each of Neuberger Berman Long Short Fund ("Long Short") and Neuberger Berman U.S. Equity Index PutWrite Strategy Fund ("U.S. Equity Index PutWrite Strategy") (each individually a "Fund," and collectively, the "Funds") is a separate operating series of the Trust.Under the 1940 Act, the status of a Fund that was registered as non-diversified may, under certain circumstances, change to that of a diversified Fund (Long Short became diversified in December 2014). U.S. Equity Index PutWrite Strategy is diversified. Each Fund offers Institutional Class shares. Long Short also offers Class A shares and Class C shares. U.S. Equity Index PutWrite Strategy also offers Class R6 shares. The Trust’s Board of Trustees (the "Board") may establish additional series or classes of shares without the approval of shareholders. As previously disclosed in a supplement to the Fund's prospectuses dated August 1, 2023, and as further described in the information statement/prospectus sent to shareholders of U.S. Equity Index PutWrite Strategy, after the close of business on September 14, 2023, Class A and Class C shares of U.S.Equity Index PutWrite Strategy converted into Institutional Class shares (without a contingent deferred sales charge or other charge). Accordingly, after that date, all Fund shareholders of Class A and Class C shares owned Institutional Class shares.

A balance indicated with a "—", reflects either a zero balance or a balance that rounds to less than 1.

The assets of each Fund belong only to that Fund, and the liabilities of each Fund are borne solely by that Fund and no other series of the Trust.

Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 946 "Financial Services—Investment Companies."

The preparation of financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") requires Management to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.

On February 25, 2022, to facilitate compliance with certain requirements necessary to maintain its status as a regulated investment company ("RIC"), Long Short formed NB A24 Long Short Blocker LLC (the "Blocker"), a Delaware limited liability company, to hold interests in certain private placements. The Blocker is a wholly owned subsidiary of Long Short.

As of October 31, 2023, the value of Long Short's investment in the Blocker was as follows: 

Investment in Blocker	Percentage of Net Assets
$4,591,104	0.1 %

2

Consolidation: The accompanying financial statements of Long Short present the consolidated accounts of Long Short and the Blocker. All intercompany accounts and transactions have been eliminated in consolidation.

3

Portfolio valuation: In accordance with ASC 820 "Fair Value Measurement" ("ASC 820"), all investments held by each of the Funds are carried at the value that Management believes a Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs, including the

ß

Notes to Consolidated Financial Statements for Long Short

45

volume and level of activity for the asset or liability in the market, are considered in valuing the Funds' investments, some of which are discussed below. At times, Management may need to apply significant judgment to value investments in accordance with ASC 820.

ASC 820 established a three-tier hierarchy of inputs to create a classification of value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

•

Level 1 – unadjusted quoted prices in active markets for identical investments

•

Level 2 – other observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)

•

Level 3 – unobservable inputs (including a Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.

The value of the Funds’ investments (long and short positions) in equity securities, exchange-traded funds ("ETFs"), preferred stocks, master limited partnerships and limited partnerships, warrants and exchange-traded options purchased and written, for which market quotations are available, is generally determined by Management by obtaining valuations from independent pricing services based on the latest sale price quoted on a principal exchange or market for that security (Level 1 inputs).Securities traded primarily on the NASDAQ Stock Market are normally valued at the NASDAQ Official Closing Price ("NOCP") provided by NASDAQ each business day. The NOCP is the most recently reported price as of 4:00:02 p.m., Eastern Time, unless that price is outside the range of the "inside" bid and asked prices (i.e., the bid and asked prices that dealers quote to each other when trading for their own accounts); in that case, NASDAQ will adjust the price to equal the inside bid or asked price, whichever is closer. Because of delays in reporting trades, the NOCP may not be based on the price of the last trade to occur before the market closes. If there is no sale of a security on a particular day, the independent pricing services may value the security based on market quotations.

The value of the Funds’ investments for long and short positions in debt securities is determined by Management primarily by obtaining valuations from independent pricing services based on bid or offer quotations, respectively, or if quotations are not available, by methods that include various considerations based on security type (generally Level 2 inputs). In addition to the consideration of yields or prices of securities of comparable quality, coupon, maturity and type, indications as to values from dealers, and general market conditions, the following is a description of other Level 2 inputs and related valuation techniques used by independent pricing services to value certain types of debt securities held by the Funds:

Corporate Bonds. Inputs used to value corporate debt securities generally include relevant credit information, observed market movements, sector news, U.S. Treasury yield curve or relevant benchmark curve, and other market information, which may include benchmark yield curves, reported trades, broker-dealer quotes, issuer spreads, comparable securities, and reference data, such as market research publications, when available ("Other Market Information").

Convertible Bonds. Inputs used to value convertible bonds generally include underlying stock data, conversion rates, credit-specific details, relevant listed bond and preferred stock prices and Other Market Information.

U.S. Treasury Obligations. Inputs used to value U.S. Treasury securities generally include quotes from several inter-dealer brokers and Other Market Information.

High Yield Securities. Inputs used to value high yield securities generally include a number of observations of equity and credit default swap curves related to the issuer and Other Market Information.

The value of futures contracts is determined by Management by obtaining valuations from independent pricing services at the settlement price at the market close (Level 1 inputs).

46

The value of total return swaps and total return basket swaps is determined by Management by obtaining valuations from independent pricing services using the underlying asset and stated benchmark interest rate (Level 2 inputs).

The value of contracts for difference ("CFD") is determined primarily by obtaining valuations from independent pricing services, which are based on references to the underlying asset and the stated reference rate (Level 2 inputs).

Management has developed a process to periodically review information provided by independent pricing services for all types of securities.

Investments in non-exchange traded investment companies are valued using the respective fund’s daily calculated net asset value ("NAV") per share (Level 2 inputs), when available.

If a valuation is not available from an independent pricing service, or if Management has reason to believe that the valuation received does not represent the amount a Fund might reasonably expect to receive on a current sale in an orderly transaction, Management seeks to obtain quotations from brokers or dealers (generally considered Level 2 or Level 3 inputs depending on the number of quotes available). If such quotations are not available, the security is valued using methods Management has approved in the good-faith belief that the resulting valuation will reflect the fair value of the security. Pursuant to Rule 2a-5 under the 1940 Act, the Board designated Management as the Funds' valuation designee. As the Funds' valuation designee, Management is responsible for determining fair value in good faith for all Fund investments. Inputs and assumptions considered in determining fair value of a security based on Level 2 or Level 3 inputs may include, but are not limited to, the type of security; the initial cost of the security; the existence of any contractual restrictions on the security’s disposition; the price and extent of public trading in similar securities of the issuer or of comparable companies; quotations or evaluated prices from broker-dealers or pricing services; information obtained from the issuer and analysts; an analysis of the company’s or issuer’s financial statements; an evaluation of the inputs that influence the issuer and the market(s) in which the security is purchased and sold.

The value of the Funds' investments in foreign securities is generally determined using the same valuation methods and inputs as other Fund investments, as discussed above. Foreign security prices expressed in local currency values are normally translated from the local currency into U.S. dollars using the exchange rates as of 4:00 p.m., Eastern Time on days the New York Stock Exchange ("NYSE") is open for business. Management has approved the use of ICE Data Services ("ICE") to assist in determining the fair value of foreign equity securities when changes in the value of a certain index suggest that the closing prices on the foreign exchanges may no longer represent the amount that a Fund could expect to receive for those securities or when foreign markets are closed and U.S. markets are open. In each of these events, ICE will provide adjusted prices for certain foreign equity securities using a statistical analysis of historical correlations of multiple factors (Level 2 inputs). Management has also approved the use of ICE to evaluate the prices of foreign debt securities as of the time at which a Fund's share price is calculated. ICE utilizes benchmark spread and yield curves and evaluates available market activity from the local close to the time as of which a Fund's share price is calculated (Level 2 inputs) to assist in determining prices for certain foreign debt securities. In the case of both foreign equity and foreign debt securities, in the absence of precise information about the market values of these foreign securities as of the time at which a Fund's share price is calculated, Management has determined based on available data that prices adjusted or evaluated in this way are likely to be closer to the prices a Fund could realize on a current sale than the prices of those securities established at the close of the foreign markets in which the securities primarily trade.

Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or traded.

4

Foreign currency translations: The accounting records of the Funds and the Blocker are maintained in U.S. dollars. Foreign currency amounts are normally translated into U.S. dollars using the exchange rate as of 4:00 p.m. Eastern Time, on days the NYSE is open for business, to determine the value of investments, other assets and liabilities. Purchase and sale prices of securities, and income and expenses, are translated

47

into U.S. dollars at the prevailing rate of exchange on the respective dates of such transactions. Net unrealized foreign currency gain/(loss), if any, arises from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in exchange rates and is stated separately in the Statements of Operations.

5

Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. Dividend income is recorded on the ex-dividend date or, for certain foreign dividends, as soon as a Fund becomes aware of the dividends. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, including accretion of discount (adjusted for original issue discount, where applicable) and amortization of premium, where applicable, is recorded on the accrual basis. Realized gains and losses from securities transactions and foreign currency transactions, if any, are recorded on the basis of identified cost and stated separately in the Statements of Operations. Included in net realized gain/(loss) on investments are proceeds from the settlement of class action litigation(s) in which certain of the Funds participated as a class member. The amount of such proceeds for the year ended October 31, 2023, was $6,458 for Long Short.

6

Income tax information: Each Fund is treated as a separate entity for U.S. federal income tax purposes. It is the policy of each Fund to continue to qualify for treatment as a RIC by complying with the requirements of the U.S. Internal Revenue Code applicable to RICs and to distribute substantially all of its net investment income and net realized capital gains to its shareholders. To the extent a Fund distributes substantially all of its net investment income and net realized capital gains to shareholders, no federal income or excise tax provision is required.

ASC 740 "Income Taxes" sets forth a minimum threshold for financial statement recognition of a tax position taken, or expected to be taken, in a tax return. The Funds recognize interest and penalties, if any, related to unrecognized tax positions as an income tax expense in the Statements of Operations. The Funds are subject to examination by U.S. federal and state tax authorities for returns filed for the tax years for which the applicable statutes of limitations have not yet expired. Management has analyzed each Fund's tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Funds' financial statements.

For federal income tax purposes, the estimated cost and unrealized appreciation/(depreciation) in value of investments held at October 31, 2023 were as follows: 

	Cost	Gross Unrealized Appreciation	Gross Unrealized Depreciation	Net Unrealized Appreciation/ (Depreciation)
Long Short	$4,744,764,902	$1,231,913,011	$245,819,669	$986,093,342
U.S. Equity Index PutWrite Strategy	472,610,259	—	993,087	(993,087 )

Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatments of income and gains on various investment securities held by each Fund, timing differences and differing characterization of distributions made by each Fund. The Funds may also utilize earnings and profits distributed to shareholders on redemption of their shares as a part of the dividends-paid deduction for income tax purposes.

Any permanent differences resulting from different book and tax treatment are reclassified at year-end and have no impact on net income, NAV or NAV per share of the Funds. For the year ended October 31, 2023, the Funds recorded permanent reclassifications primarily related to one or more of the following: wholly owned subsidiary income, prior year true up adjustments, non-deductible expenses from partnerships and

48

deemed distributions on shareholder redemptions. For the year ended October 31, 2023, the Funds recorded the following permanent reclassifications: 

	Paid-in Capital	Total Distributable Earnings/(Losses)
Long Short	$3,417,230	$(3,417,230 )

The tax character of distributions paid during the years ended October 31, 2023, and October 31, 2022, was as follows: 

	Distributions Paid From:
	Ordinary Income		Long-Term Capital Gain		Return of Capital		Total
	2023	2022	2023	2022	2023	2022	2023	2022
Long Short	$114,480,318	$—	$240,749,525	$61,229,542	$—	$—	$355,229,843	$61,229,542
U.S. Equity Index PutWrite Strategy	27,732,358	52,422,370	—	46,483,437	622,678	—	28,355,036	98,905,807

As of October 31, 2023, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows: 

	Undistributed Ordinary Income	Undistributed Long-Term Capital Gain	Unrealized Appreciation/ (Depreciation)	Loss Carryforwards and Deferrals	Other Temporary Differences	Total
Long Short	$51,152,702	$—	$986,093,342	$(7,780,394 )	$(10,251 )	$1,029,455,399
U.S. Equity Index PutWrite Strategy	—	—	(993,087 )	(58,489,961 )	(2,728 )	(59,485,776 )

The temporary differences between book basis and tax basis distributable earnings are primarily due to: losses disallowed and recognized on wash sales, straddles and unsettled short sales, mark-to-market adjustments on swaps, futures, amortization of organizational expenses, tax adjustments related to partnerships, swap contracts and other investments.

To the extent each Fund’s net realized capital gains, if any, can be offset by capital loss carryforwards, it is the policy of each Fund not to distribute such gains. Capital loss carryforward rules allow for RICs to carry forward capital losses indefinitely and to retain the character of capital loss carryforwards as short-term or long-term. As determined at October 31, 2023, the following Funds had unused capital loss carryforwards available for federal income tax purposes to offset future net realized capital gains, if any, as follows: 

	Capital Loss Carryforwards
	Long-Term	Short-Term
U.S. Equity Index PutWrite Strategy	$50,355,453	$8,134,508

The Blocker is taxed as a corporation under the U.S. Internal Revenue Code. As of October 31, 2023, Long Short had a gross deferred tax asset of $63,153 resulting from deferred interest expense, capital losses and net operating losses in the Blocker and a gross deferred tax liability of $91,585 resulting from appreciation of the underlying holding. As of October 31, 2023, the Blocker has a net deferred tax liability of $28,432.

7

Foreign taxes: Foreign taxes withheld, if any, represent amounts withheld by foreign tax authorities, net of refunds recoverable.

Foreign capital gains on certain foreign securities may be subject to foreign taxes, which are accrued as applicable. At October 31, 2023, there were no outstanding balances of accrued capital gains taxes for any Fund.

As a result of several European Court of Justice ("ECJ") court cases in certain countries across the European Union ("EU"), a Fund that invests in foreign securities may file tax reclaims for previously withheld taxes on

49

dividends earned in those countries ("ECJ tax reclaims"). These additional filings are subject to various administrative proceedings by the local jurisdictions’ tax authorities within the EU, as well as a number of related judicial proceedings. When the ECJ tax reclaim is "more likely than not" to not be sustained assuming examination by tax authorities due to the uncertainty that exists as to the ultimate resolution of these proceedings, the likelihood of receipt of these ECJ tax reclaims, and the potential timing of payment, no amounts are included in the Statements of Assets and Liabilities. Income recognized, if any, for ECJ tax reclaims would be included in "Interest and other income—unaffiliated issuers" in the Statements of Operations and the cost to file these additional ECJ tax reclaims, if any, would be included in "Miscellaneous and other fees" in the Statement of Operations.

8

Distributions to shareholders: Each Fund may earn income, net of expenses, daily on its investments. Distributions from net investment income, if any, are recorded on the ex-date and generally distributed once a year (usually in December) for Long Short and quarterly for U.S. Equity Index PutWrite Strategy. Distributions from net realized capital gains, if any, generally are distributed once a year (usually in December) and are recorded on the ex-date.

For funds that invest in REITs, these Funds pass through to their shareholders substantially all REIT distributions and other income they receive, less operating expenses. The distributions received from REITs are generally composed of income, capital gains, and/or return of REIT capital, but the REITs do not report this information to these Funds until the following calendar year. At October 31, 2023, these Funds estimated these amounts for the period January 1, 2023 to October 31, 2023 within the financial statements because the 2023 information is not available from the REITs until after each Fund’s fiscal year-end. All estimates are based upon REIT information sources available to these Funds together with actual IRS Forms 1099-DIV received to date. For the year ended October 31, 2023, the character of distributions, if any, paid to shareholders of these Funds disclosed within the Statements of Changes in Net Assets was based on estimates made at that time. Based on past experience it is possible that a portion of these Funds' distributions during the current fiscal year, if any, will be considered tax return of capital, but the actual amount of the tax return of capital, if any, is not determinable until after each Fund’s fiscal year-end. After calendar year-end, when these Funds learn the nature of the distributions paid by REITs during that year, distributions previously identified as income may be recharacterized as return of capital and/or capital gain. After all applicable REITs have informed these Funds of the actual breakdown of distributions paid to these Funds during their fiscal year, estimates previously recorded are adjusted to reflect actual results. As a result, the composition of these Funds' distributions as reported herein may differ from the final composition determined after calendar year-end and reported to these Funds shareholders on IRS Form 1099-DIV.

9

Expense allocation: Certain expenses are applicable to multiple funds within the complex of related investment companies. Expenses directly attributable to a fund are charged to that fund. Expenses of the Trust that are not directly attributable to a particular series of the Trust (e.g., a Fund) are allocated among the series of the Trust, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the series can otherwise be made fairly. Expenses borne by the complex of related investment companies, which includes open-end and closed-end investment companies for which NBIA serves as investment manager, that are not directly attributable to a particular investment company in the complex (e.g., the Trust) or series thereof are allocated among the investment companies in the complex or series thereof on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the investment companies in the complex or series thereof can otherwise be made fairly. Each Fund’s expenses (other than those specific to each class) are allocated proportionally each day among its classes based upon the relative net assets of each class.

10

Investments in foreign securities: Investing in foreign securities may involve sovereign and other risks, in addition to the credit and market risks normally associated with domestic securities. These additional risks include the possibility of adverse political and economic developments (including political instability, nationalization, expropriation, or confiscatory taxation) and the potentially adverse effects of unavailability of public information regarding issuers, less governmental supervision and regulation of financial markets, reduced liquidity of certain financial markets, and the lack of uniform accounting, auditing, and financial

50

reporting standards or the application of standards that are different or less stringent than those applied in the United States. Foreign securities also may experience greater price volatility, higher rates of inflation, and delays in settlement.

11

When-issued/delayed delivery securities: A Fund may purchase securities with delivery or payment to occur at a later date beyond the normal settlement period. At the time a Fund enters into a commitment to purchase a security, the transaction is recorded and the value of the security is reflected in the NAV. The price of such security and the date when the security will be delivered and paid for are fixed at the time the transaction is negotiated. The value of the security may vary with market fluctuations. No interest accrues to a Fund until payment takes place. When-issued and delayed delivery transactions can have a leverage-like effect on a Fund, which can increase fluctuations in the Fund’s NAV. Certain risks may arise upon entering into when-issued or delayed delivery securities transactions from the potential inability of counterparties to meet the terms of their contracts or if the issuer does not issue the securities due to political, economic, or other factors. Additionally, losses may arise due to changes in the value of the underlying securities.

12

Securities sold short: A Fund may engage in short sales, which are sales of securities which have been borrowed from a third party on the expectation that the market price will decline. If the price of the securities decreases, a Fund will make a profit by purchasing the securities in the open market at a price lower than the one at which it sold the securities. If the price of the securities increases, a Fund may have to cover its short positions at a price higher than the short sale price, resulting in a loss. Gains are limited to the price at which a Fund sold the security short, while losses are potentially unlimited in size. The Funds pledge securities and/or other assets, which may include cash collateral from securities lending activities, to the lender as collateral. Proceeds received from short sales may be maintained by the lender as collateral or may be released to the Funds and used to purchase additional securities or for any other purpose. Proceeds maintained by the lender are included in the "Cash collateral segregated for short sales" on the Statements of Assets and Liabilities. The Funds are contractually responsible to remit to the lender any dividends and interest payable on securities while those securities are being borrowed by the Fund. The Funds may receive or pay the net of the interest charged by the prime broker on the borrowed securities and a financing charge for the difference in the market value of the short position and the cash collateral deposited with the broker. This income or fee is calculated daily based upon the market value of each borrowed security and a variable rate that is dependent on the availability of the security. These costs related to short sales (i.e., dividend and interest remitted to the lender and interest charged by the prime broker) are recorded as an expense of the Funds and are excluded from the contractual expense limitation. A net negative expense, if any, represents a gain to the Fund as the total cash rebates received exceeded the other costs related to short sales. The net amount of fees incurred during the year ended October 31, 2023, are included in the "Dividend and interest expense on securities sold short" on the Statements of Operations and are as follows:

Long Short $ 19,790,037

13

Investments in private companies:  Investments in private companies, including companies that have not yet issued securities publicly in an initial public offering, involve greater risks than investments in securities of companies that have traded publicly on an exchange for extended periods of time. Investments in these companies are generally less liquid than investments in securities issued by public companies and may be difficult for the Fund to value.  Private placements and other restricted securities may not be listed on an exchange and may have no active trading market. As a result of the absence of a public trading market, the prices of these securities may be more difficult to determine than publicly traded securities and these securities may involve heightened risk as compared to investments in securities of publicly traded companies. Private placements and other restricted securities may be illiquid, and it frequently can be difficult to sell them at a time when it may otherwise be desirable to do so or the Fund may be able to sell them only at prices that are less than what the Fund regards as their fair market value.

14

Derivative instruments: The Funds' use of derivatives during the year ended October 31, 2023, is described below. Please see the Schedule of Investments for each Fund's open positions in derivatives, if any, at October 31, 2023. The disclosure requirements of  ASC 815 "Derivatives and Hedging" ("ASC 815") distinguish between derivatives that qualify for hedge accounting and those that do not. Because

51

investment companies value their derivatives at fair value and recognize changes in fair value through the Statements of Operations, they do not qualify for hedge accounting. Accordingly, even though a Fund's investments in derivatives may represent economic hedges, they are considered non-hedge transactions for purposes of this disclosure.

Rule 18f-4 under the 1940 Act, regulates the use of derivatives for certain funds registered under the 1940 Act ("Rule 18f-4"). Unless a Fund qualifies as a "limited derivatives user" as defined in Rule 18f-4, the Fund is subject to a comprehensive derivatives risk management program, is required to comply with certain value-at-risk based leverage limits and is required to provide additional disclosure both publicly and to the SEC regarding its derivatives positions. If a Fund qualifies as a limited derivatives user, Rule 18f-4 requires the Fund to have policies and procedures to manage its aggregate derivatives risk.

Futures contracts: During the year ended October 31, 2023, Long Short used futures on broader market indices and U.S. Treasuries in an effort either to enhance returns or to manage or adjust the risk profile and the investment exposure of the Fund.

At the time a Fund enters into a futures contract, it is required to deposit with the futures commission merchant a specified amount of cash or liquid securities, known as "initial margin," which is a percentage of the value of the futures contract being traded that is set by the exchange upon which the futures contract is traded. Each day, the futures contract is valued at the official settlement price of the board of trade or U.S. commodity exchange on which such futures contract is traded. Subsequent payments, known as "variation margin," to and from the broker are made on a daily basis, or as needed, as the market price of the futures contract fluctuates. Daily variation margin adjustments, arising from this "mark to market," are recorded by the Fund as unrealized gains or losses.

Although some futures by their terms call for actual delivery or acquisition of the underlying securities or currency, in most cases the contracts are closed out prior to delivery by offsetting purchases or sales of matching futures. When the contracts are closed or expire, a Fund recognizes a gain or loss. Risks of entering into futures contracts include the possibility there may be an illiquid market, possibly at a time of rapidly declining prices, and/or a change in the value of the contract may not correlate with changes in the value of the underlying securities. Futures executed on regulated futures exchanges have minimal counterparty risk to the Fund because the exchange’s clearinghouse assumes the position of the counterparty in each transaction. Thus, a Fund is exposed to risk only in connection with the clearinghouse and not in connection with the original counterparty to the transaction.

For U.S. federal income tax purposes, the futures transactions undertaken by a Fund may cause the Fund to recognize gains or losses from marking contracts to market even though its positions have not been sold or terminated, may affect the character of the gains or losses recognized as long-term or short-term, and may affect the timing of some capital gains and losses realized by the Fund. Also, a Fund’s losses on transactions involving futures contracts may be deferred rather than being taken into account currently in calculating such Fund’s taxable income.

Total return basket swap contracts: During the year ended October 31, 2023, Long Short used total return basket swaps to increase returns, reduce risks and for hedging purposes. A Fund may enter into a total return basket swap agreement to obtain exposure to a portfolio of long and short securities. Under the terms of the agreement, the swap is designed to function as a portfolio of direct investments in long and short equity or fixed income positions. The Funds have the ability to trade in and out of long and short positions within the swap and will receive all of the economic benefits and risks equivalent to direct investments in these positions such as: capital appreciation/(depreciation), corporate actions, and dividends and interest received and paid, all of which are reflected in the swap value. The swap value also includes interest charges and credits related to the notional values of the long and short positions and cash balances within the swap. These interest charges and credits are based on defined market rates plus or minus a specified spread and are referred to herein as "financing costs". Positions within the swap are reset periodically, and financing costs are reset according to the terms of the contract. During a reset, any unrealized gains (losses) on positions and accrued financing costs become available for cash settlement between the Funds and the swap counterparty. For over-the-counter ("OTC") total return basket swaps, cash settlement in and out of the swap may occur at a reset date or any other date, at the discretion of the

52

Funds and the counterparty, over the life of the agreement, and is generally determined based on limits and thresholds established as part of an agreement between the Funds and the counterparty. A change in the market value of a total return basket swap contract is recognized as a change in unrealized appreciation/(depreciation) on swap contracts in the Statements of Operations. Cash settlements between a Fund and the counterparty are recognized as realized gains (losses) on closing of swap contracts in the Statements of Operations.

Total return swap contracts: During the year ended October 31, 2023, Long Short used total return swaps, including CFDs, to increase returns, reduce risks and for hedging purposes. Total return swaps, including CFDs, involve commitments to pay fixed or floating rate interest in exchange for a market-linked return based on a notional amount. To the extent the total return of the reference security or index underlying the total return swap exceeds or falls short of the offsetting interest rate obligation, a Fund will receive a payment or make a payment to the counterparty, respectively. Certain risks may arise when entering into total return swap transactions, including counterparty default, liquidity or unfavorable changes in the value of the underlying reference security or index. The value of the swap is adjusted daily and the change in value, if any, is recorded as unrealized appreciation or (depreciation) in the Statements of Assets and Liabilities. Payments received or made at the end of each measurement period are recorded as realized gain or loss in the Statements of Operations. For OTC total return swaps, cash settlement in and out of the swaps may occur at a reset date or any other date, at the discretion of the Fund and the counterparty, over the life of the agreement, and is generally determined based on limits and thresholds established as part of an agreement between the Fund and the counterparty.

Options: During the year ended October 31, 2023, Long Short used options written to enhance total returns. During the year ended October 31, 2023, Long Short used options purchased either for hedging purposes or to enhance total returns. During the year ended October 31, 2023, U.S. Equity Index PutWrite Strategy used options written primarily to gain exposure to securities, markets, sectors or geographical areas and also to enhance total return and gain exposure more efficiently than through a direct purchase of the underlying security.

Premiums paid by a Fund upon purchasing a call or put option are recorded in the asset section of the Fund’s Statement of Assets and Liabilities and are subsequently adjusted to the current market value. When an option is exercised, closed, or expired, a Fund realizes a gain or loss and the asset is eliminated. For purchased call options, a Fund's loss is limited to the amount of the option premium paid.

Premiums received by a Fund upon writing a call option or a put option are recorded in the liability section of the Fund’s Statement of Assets and Liabilities and are subsequently adjusted to the current market value. When an option is exercised, closed, or expired, a Fund realizes a gain or loss and the liability is eliminated.

When a fund writes a call option on an underlying asset it does not own, its exposure on such an option is theoretically unlimited. When writing a covered call option, a Fund, in return for the premium, gives up the opportunity for profit from a price increase in the underlying security above the exercise price, but conversely retains the risk of loss should the price of the security decline. When writing a put option, a Fund, in return for the premium, takes the risk that it must purchase the underlying security at a price that may be higher than the current market price of the security. If a call or put option that a Fund has written expires unexercised, a Fund will realize a gain for the amount of the premium. All securities covering outstanding written options are held in escrow by the custodian bank.

53

At October 31, 2023, the Funds listed below had the following derivatives (which did not qualify as hedging instruments under ASC 815), grouped by primary risk exposure: 

	Asset Derivatives		Liability Derivatives
Fund	Statements of Assets and Liabilities Location	Value	Statements of Assets and Liabilities Location	Value
Long Short
Futures
Equity risk	Receivable/Payable for accumulated variation margin on futures contracts	$69,294,685	Receivable/Payable for accumulated variation margin on futures contracts	$—
Over-the-counter swaps
Equity risk	Over-the-counter swap contracts, at value(a)	19,409,442	Over-the-counter swap contracts, at value(a)	(19,842,997 )
U.S. Equity Index PutWrite Strategy
Options written
Equity risk	—	—	Option contracts written, at value	(6,664,000 )

 

(a) "Over-the-counter swaps" reflect the cumulative unrealized appreciation/(depreciation) of the over-the-counter swap contracts plus accrued interest as of October 31, 2023.

The impact of the use of these derivative instruments on the Statements of Operations during the year ended October 31, 2023, was as follows: 

Fund	Net Realized Gain/ (Loss) on Derivatives(a)	Change in Net Unrealized Appreciation/ (Depreciation) on Derivatives(b)
Long Short
Futures
Equity risk	$(97,657,260 )	$58,355,307
Swaps
Equity risk	29,602,252	(60,015,477 )
Options purchased
Equity risk	(5,192,108 )	1,218,261
Options written
Equity risk	8,152,349	(421,456 )
U.S. Equity Index PutWrite Strategy
Options written
Equity risk	38,694,173	(5,429,295 )

 

(a) Net realized gain/(loss) on derivatives is located in the Statements of Operations each under the caption, "Net realized gain/(loss) on:"

 

Futures	Expiration or closing of futures contracts
Swaps	Expiration or closing of swap contracts
Options purchased	Transactions in investment securities of unaffiliated issuers
Options written	Expiration or closing of option contracts written

 

54

(b) Change in net unrealized appreciation/(depreciation) is located in the Statements of Operations each under the caption, "Change in net unrealized appreciation/(depreciation) in value of:"

 

Futures	Futures contracts
Swaps	Swap contracts
Options purchased	Investment securities of unaffiliated issuers
Options written	Option contracts written

While the Funds may receive redeemable preference shares, rights and warrants in connection with their investments in securities, these preference shares, rights and warrants are not considered "derivative instruments" under ASC 815.

 

15

Securities lending: Each Fund, using State Street as its lending agent, may loan securities to qualified brokers and dealers in exchange for negotiated lender’s fees. These fees, if any, would be disclosed within the Statements of Operations under the caption "Income from securities loaned-net" and are net of expenses retained by State Street as compensation for its services as lending agent.

The initial collateral received by a Fund at the beginning of each transaction shall have a value equal to at least 102% of the prior day’s market value of the loaned securities (105% in the case of international securities). Collateral in the form of cash and/or securities issued or guaranteed by the U.S. government or its agencies, equivalent to at least 100% of the market value of securities, is maintained at all times. Thereafter, the value of the collateral is monitored on a daily basis, and collateral is moved daily between a counterparty and a Fund until the close of the transaction. Cash collateral is generally invested in a money market fund registered under the 1940 Act that is managed by an affiliate of State Street and is included in the Statements of Assets and Liabilities under the caption "Investments in securities, at value—Unaffiliated Issuers". The total value of securities received as collateral for securities on loan is included in a footnote following the applicable Schedule of Investments, but is not included within the Statements of Assets and Liabilities because the receiving Fund does not have the right to sell or repledge the securities received as collateral. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities. Any increase or decrease in the fair value of the securities loaned and any interest earned or dividends paid or owed on those securities during the term of the loan would accrue to that Fund.

As of October 31, 2023, the Fund listed below had outstanding loans of securities to certain approved brokers each with a value as follows: 

	Value of Securities Loaned
Long Short	$18,305,569

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As of October 31, 2023, the Fund listed below had outstanding loans of securities to certain approved brokers for which it received collateral as follows: 

	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous	Less Than 30 Days	Between 30 & 90 days	Greater Than 90 Days	Total
Securities Lending Transactions(a)
Common Stocks
Long Short	$18,785,183	$—	$—	$—	$18,785,183

 

(a) Amounts represent the payable for loaned securities collateral received.

16

Offsetting assets and liabilities: The Funds are required to disclose both gross and net information for assets and liabilities related to OTC derivatives, and securities lending and securities borrowing transactions that are eligible for offset or subject to an enforceable master netting or similar agreement. Long Short held one or more of these investments at October 31, 2023. The Funds’ OTC derivative assets and liabilities at fair value by type and securities lending assets are reported gross in the Statements of Assets and Liabilities. The following tables present derivative and securities lending assets and liabilities by counterparty, net of amounts available for offset under a master netting or similar agreement and net of the related collateral received by a Fund for assets and pledged by a Fund for liabilities as of October 31, 2023.

Description	Gross Amounts of Assets Presented in the Statements of Assets and Liabilities	Gross Amounts of Liabilities Presented in the Statements of Assets and Liabilities
Long Short
Over-the-counter swap contracts	$19,409,442	$(19,842,997 )
Securities lending	18,305,569	—
Total	$37,715,011	$(19,842,997 )

 

Gross Amounts Not Offset in the Statements of Assets and Liabilities:
	Assets				Liabilities
Counterparty	Gross Amounts Presented in the Statements of Assets and Liabilities	Liabilities Available for Offset	Collateral Received(a)	Net Amount(b)	Gross Amounts Presented in the Statements of Assets and Liabilities	Assets Available for Offset	Collateral Pledged(a)	Net Amount(b)
Long Short
CITI	$—	$—	$—	$—	$(272,357 )	$—	$272,357	$—
GSI	—	—	—	—	(17,345,180 )	—	17,345,180	—
JPM	19,409,442	(2,225,460 )	—	17,183,982	(2,225,460 )	2,225,460	—	—
SSB	18,305,569	—	(18,305,569 )	—	—	—	—	—
Total	$37,715,011	$(2,225,460 )	$(18,305,569 )	$17,183,982	$(19,842,997 )	$2,225,460	$17,617,537	$—

 

(a)	Collateral received (or pledged) is limited to an amount not to exceed 100% of the net amount of assets (or liabilities) in the tables presented above, for each respective counterparty.
(b)	A net amount greater than zero represents amounts subject to loss as of October 31, 2023, in the event of a counterparty failure. A net amount less than zero represents amounts under-collateralized to each counterparty as of October 31, 2023.

17

Indemnifications: Like many other companies, the Trust’s organizational documents provide that its officers ("Officers") and trustees ("Trustees") are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, both in some of its principal service contracts and in

56

the normal course of its business, the Trust enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Trust’s maximum exposure under these arrangements is unknown as this could involve future claims against the Trust or a Fund.

18

Investment company securities and exchange-traded funds: The Funds may invest in shares of other registered investment companies, including ETFs, within the limitations prescribed by the 1940 Act, in reliance on rules adopted by the SEC, particularly Rule 12d1-4 or any other applicable exemptive relief. Rule 12d1-4 permits fund of funds arrangements, and includes (i) limits on control and voting; (ii) required evaluations and findings; (iii) required fund of funds investment agreements; and (iv) limits on complex structures. Shareholders of a Fund will indirectly bear their proportionate share of any management fees and other expenses paid by such other investment companies, in addition to the management fees and expenses of the Fund.

19

Other: All net investment income and realized and unrealized capital gains and losses of each Fund are allocated, on the basis of relative net assets, pro rata among its respective classes.

Note B—Investment Management Fees, Administration Fees, Distribution Arrangements, and Other Transactions with Affiliates:

Each Fund retains NBIA as its investment manager under a Management Agreement. For such investment management services, each Fund pays NBIA an investment management fee as a percentage of average daily net assets according to the following table: 

	First $250 million	Next $250 million	Next $250 million	Next $250 million	Next $500 million	Next $500 million	Next $2 billion	Thereafter
Long Short	1.20 %	1.175 %	1.15 %	1.125 %	1.10 %	1.075 %	1.075 %	1.05 %
U.S. Equity Index PutWrite Strategy	0.45 %	0.45 %	0.45 %	0.45 %	0.45 %	0.45 %	0.45 %	0.45 %

Accordingly, for the year ended October 31, 2023, the investment management fee pursuant to the Management Agreement was equivalent to an annual effective rate of each Fund’s average daily net assets, as follows: 

	Effective Rate
Long Short	1.08 %

Each Fund retains NBIA as its administrator under an Administration Agreement. The administration fee is assessed at the class level and each share class of a Fund, as applicable, pays NBIA an annual administration fee equal to the following: 0.26% for each of Class A and Class C; 0.15% for Institutional Class; and 0.05% for Class R6, each as a percentage of its average daily net assets. Additionally, NBIA retains State Street as its sub-administrator under a Sub-Administration Agreement. NBIA pays State Street a fee for all services received under the Sub-Administration Agreement.

NBIA has contractually agreed to waive fees and/or reimburse certain expenses of the Institutional Class, Class A, Class C and Class R6 of each Fund that offers those classes so that the total annual operating expenses of those classes do not exceed the expense limitations as detailed in the following table. These undertakings exclude interest, taxes, brokerage commissions, acquired fund fees and expenses, extraordinary expenses, and dividend and interest expenses relating to short sales, if any (commitment fees relating to borrowings are treated as interest for purposes of this exclusion) ("annual operating expenses"); consequently, net expenses may exceed the contractual expense limitations. The expenses of the Blocker are included in the total expenses used to calculate the reimbursement, if any, which Long Short has agreed to share with the Blocker. For the year ended October 31, 2023, the expenses of the Blocker amounted to $13,339.

57

At October 31, 2023, the Funds' contingent liabilities to NBIA under the agreements were as follows: 

			Expenses Reimbursed in Year Ended October 31,
			2021	2022	2023
			Subject to Repayment until October 31,
Class	Contractual Expense Limitation(a)	Expiration	2024	2025	2026
Long Short Institutional Class	1.70 %	10/31/26	$—	$—	$—
Long Short Class A	2.06 %	10/31/26	—	—	—
Long Short Class C	2.81 %	10/31/26	—	—	—
U.S. Equity Index PutWrite Strategy Institutional Class	0.65 %	10/31/26	103,376	145,420	152,800
U.S. Equity Index PutWrite Strategy Class R6	0.55 %	10/31/26	63,224	96,266	79,771

 

(a) Expense limitation per annum of the respective class’s average daily net assets.

Each Fund has agreed that each of its respective classes will repay NBIA for fees and expenses waived or reimbursed for that class provided that repayment does not cause that class’s annual operating expenses to exceed its contractual expense limitation in place at the time the fees and expenses were waived or reimbursed, or the expense limitation in place at the time the Fund repays NBIA, whichever is lower. Any such repayment must be made within three years after the year in which NBIA incurred the expense.

During the year ended October 31, 2023, there was no repayment to NBIA under these agreements.

Each Fund also has a distribution agreement with Neuberger Berman BD LLC (the "Distributor") with respect to each class of shares. The Distributor acts as agent in arranging for the sale of class shares without sales commission or other compensation, except as described below for Class A and Class C shares, and bears the advertising and promotion expenses.

However, the Distributor receives fees from Class A and Class C under their distribution plans (each a "Plan", collectively the "Plans") pursuant to Rule 12b-1 under the 1940 Act. The Plans provide that, as compensation for administrative and other services provided to these classes, the Distributor’s activities and expenses related to the sale and distribution of these classes, and ongoing services provided to investors in these classes, the Distributor receives from each of these classes a fee at the annual rate of 0.25% of Class A’s and 1.00% of Class C’s average daily net assets. The Distributor receives this amount to provide distribution and shareholder servicing for these classes and pays a portion of it to institutions that provide such services. Those institutions may use the payments for, among other purposes, compensating employees engaged in sales and/or shareholder servicing. The amount of fees paid by each class during any year may be more or less than the cost of distribution and other services provided to that class. FINRA rules limit the amount of annual distribution fees that may be paid by a mutual fund and impose a ceiling on the cumulative distribution fees paid. The Trust’s Plans comply with those rules. Effective from July 1, 2023 to September 14, 2023, the 12b-1 fees for Class A and Class C of U.S. Equity Index PutWrite Strategy were voluntarily waived until Class A and Class C shares were converted into Institutional Class shares, which amounted to $6,178. These waivers are included in the Statements of Operations under the caption "Fees waived".

Class A shares of each Fund are generally sold with an initial sales charge of up to 5.75%. Class A shares of each Fund are generally sold with no contingent deferred sales charge ("CDSC"), except that a CDSC of 1.00% applies to certain redemptions made within 18 months following purchases of $1 million or more without an initial sales charge. Class C shares of each Fund are sold with no initial sales charge and a 1.00% CDSC if shares are sold within one year after purchase.

58

For the year ended October 31, 2023, the Distributor, acting as underwriter and broker-dealer, received net initial sales charges from the purchase of Class A shares and CDSCs from the redemption of Class A and Class C shares as follows: 

	Underwriter		Broker-Dealer
	Net Initial Sales Charge	CDSC	Net Initial Sales Charge	CDSC
Long Short Class A	$31,802	$—	$—	$—
Long Short Class C	—	5,526	—	—

Note C—Securities Transactions:

During the year ended October 31, 2023, there were purchase and sale transactions of long-term securities (excluding swaps, futures and written option contracts) as follows: 

	Purchases of U.S. Government and Agency Obligations	Purchases excluding U.S. Government and Agency Obligations	Sales and Maturities of U.S. Government and Agency Obligations	Sales and Maturities excluding U.S. Government and Agency Obligations	Securities Sold Short	Covers on Securities Sold Short
Long Short	$—	$1,969,033,495	$—	$1,602,112,761	$1,410,784,302	$1,512,203,972
U.S. Equity Index PutWrite Strategy	51,509,074	—	280,800,000	54,402,273	—	—

During the year ended October 31, 2023, no brokerage commissions on securities transactions were paid to affiliated brokers.

Note D—Fund Share Transactions:

Share activity for the years ended October 31, 2023, and October 31, 2022, was as follows: 

	For the Year Ended October 31, 2023				For the Year Ended October 31, 2022
	Shares Sold	Shares Issued on Reinvestment of Dividends and Distributions	Shares Redeemed	Total	Shares Sold	Shares Issued on Reinvestment of Dividends and Distributions	Shares Redeemed	Total
Long Short
Institutional Class	131,389,728	13,832,070	(122,962,052 )	22,259,746	124,346,735	1,961,784	(81,093,771 )	45,214,748
Class A	2,554,832	412,060	(3,021,312 )	(54,420 )	2,511,275	80,214	(3,270,813 )	(679,324 )
Class C	407,755	135,670	(785,413 )	(241,988 )	640,523	28,471	(858,725 )	(189,731 )
U.S. Equity Index PutWrite Strategy
Institutional Class	8,759,802	1,787,154	(9,654,329 )	892,627	13,604,755	4,967,561	(9,920,661 )	8,651,655
Class A(a)	334,268	25,061	(886,246 )	(526,917 )	155,808	102,869	(143,261 )	115,416
Class C(a)	12,016	3,718	(147,978 )	(132,244 )	37,683	18,690	(10,983 )	45,390
Class R6	5,769,265	891,581	(9,214,685 )	(2,553,839 )	18,647,524	3,563,137	(20,095,156 )	2,115,505

 

(a) After the close of business on September 14, 2023, Class A shares and Class C shares converted into Institutional Class shares. See Note A of the Notes to Financial Statements.

59

Note E—Line of Credit:

At October 31, 2023, each Fund was a participant in a syndicated committed, unsecured $700,000,000 line of credit (the "Credit Facility"), to be used only for temporary or emergency purposes. Series of other investment companies managed by NBIA also participate in this line of credit on substantially the same terms. Interest is charged on borrowings under the Credit Facility at the highest of (a) a federal funds effective rate plus 1.00% per annum, (b) a daily simple Secured Overnight Financing Rate ("SOFR") plus 1.10% per annum, or (c) an overnight bank funding rate plus 1.00% per annum. The Credit Facility has an annual commitment fee of 0.15% per annum of the available line of credit, which is paid quarterly. Each Fund that is a participant has agreed to pay its pro rata share of the annual commitment fee, based on the ratio of its individual net assets to the net assets of all participants at the time the fee is due, and interest charged on any borrowing made by such Fund and other costs incurred by such Fund. Because several funds participate in the Credit Facility, there is no assurance that an individual fund will have access to all or any part of the $700,000,000 at any particular time. There were no loans outstanding under the Credit Facility at October 31, 2023. During the year ended October 31, 2023, no Fund utilized the Credit Facility.

Note F—Investments in Affiliates:

At October 31, 2023, affiliated persons (as defined in the 1940 Act) owned outstanding shares of the following Fund: 

	Affiliated Person(s) Percentage Ownership of Outstanding Shares
U.S. Equity Index PutWrite Strategy	0.01%

Note G—Recent Accounting Pronouncements:

In June 2022, FASB issued Accounting Standards Update No. 2022-03, "Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions" ("ASU 2022-03"). ASU 2022-03 clarifies the guidance in ASC 820, related to the measurement of the fair value of an equity security subject to contractual sale restrictions, where it eliminates the ability to apply a discount to the fair value of these securities, and introduces disclosure requirements related to such equity securities. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. Management is currently evaluating the impact of applying this update.

In December 2022, the FASB issued Accounting Standards Update No. 2022-06, "Reference Rate Reform (Topic 848)" ("ASU 2022-06"), which is an update to Accounting Standards Update No. 2021-01, "Reference Rate Reform (Topic 848)" ("ASU 2021-01") and defers the sunset date for applying the reference rate reform relief in Topic 848. ASU 2021-01 is an update of ASU 2020-04, which is in response to concerns about structural risks of interbank offered rates, and particularly the risk of cessation of LIBOR. Regulators have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. ASU 2020-04 is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The ASU 2021-01 update clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The amendments in this update are effective immediately through December 31, 2024, for all entities. Management is currently evaluating the implications, if any, of the additional requirements and its impact on the Funds' financial statements.

60

Note H—Subsequent Event:

As previously communicated, on June 29, 2023, the Board approved the conversion of U.S. Equity Index PutWrite Strategy (the "Fund") to a newly organized series of Neuberger Berman ETF Trust (the "Option Strategy ETF"). It is anticipated that the conversion, which is expected to take place on or about January 26, 2024, will be effected through the reorganization of the Fund into Option Strategy ETF (the "Conversion"). The Conversion is expected to be a tax-free organization under the U.S. Internal Revenue Code. After the Conversion, shareholders of the Fund will hold shares of the Option Strategy ETF instead of shares of the Fund. Existing shareholders of the Fund received a combined information statement/prospectus, dated November 3, 2023, which described in detail both the Conversion and Option Strategy ETF, which is involved in the Conversion.

As previously disclosed in a supplement to the Fund’s prospectuses dated August 1, 2023, and as further described in the information statement/prospectus, the Conversion will involve several important steps. First, on or about January 11, 2024, it is anticipated that Class R6 shares of the Fund will be converted into the Institutional Class of the Fund at which time the contractual expense cap for the Institutional Class will be reduced to 0.55% of average daily net assets to align its expense cap with Class R6. Second, on or about January 19, 2024, it is anticipated that the Fund will conduct a reverse stock split to increase the NAV per share of Institutional Class shares while decreasing the total number of the issued and outstanding Institutional Class shares.

Note I—Change in Fiscal Year End:

On June 29, 2023, the Board approved a change in fiscal year end from October 31 to August 31, to be effective as of the date of the Conversion, for U.S. Equity Index PutWrite Strategy.

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62

Financial Highlights

The following tables include selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements. Amounts that do not round to $0.01 or $(0.01) per share are presented as $0.00 or $(0.00), respectively. Ratios that do not round to 0.01% or (0.01)% are presented as 0.00% or (0.00)%, respectively. Net Assets with a zero balance, if any, may reflect actual amounts rounding to less than $0.1 million. A "—" indicates that the line item was not applicable in the corresponding period. 

	Net Asset Value, Beginning of Year	Net Investment Income/ (Loss)a	Net Gains or (Losses) on Securities (both realized and unrealized)	Total From Investment Operations	Dividends from Net Investment Income	Distributions from Net Realized Capital Gains	Tax Return of Capital	Total Distributions
Long Short Fund
Institutional Class
10/31/2023d	$16.45	$0.18	$1.30	$1.48	$(0.17 )	$(0.92 )	$—	$(1.09 )
10/31/2022d	$18.21	$(0.02 )	$(1.54 )	$(1.56 )	$—	$(0.20 )	$—	$(0.20 )
10/31/2021	$16.00	$(0.02 )	$2.59	$2.57	$—	$(0.36 )	$—	$(0.36 )
10/31/2020	$14.67	$(0.01 )	$1.69	$1.68	$—	$(0.35 )	$—	$(0.35 )
10/31/2019	$14.54	$0.04	$0.85	$0.89	$—	$(0.76 )	$—	$(0.76 )
Class A
10/31/2023d	$16.20	$0.12	$1.29	$1.41	$(0.09 )	$(0.92 )	$—	$(1.01 )
10/31/2022d	$18.00	$(0.10 )	$(1.50 )	$(1.60 )	$—	$(0.20 )	$—	$(0.20 )
10/31/2021	$15.88	$(0.08 )	$2.56	$2.48	$—	$(0.36 )	$—	$(0.36 )
10/31/2020	$14.61	$(0.07 )	$1.69	$1.62	$—	$(0.35 )	$—	$(0.35 )
10/31/2019f	$14.54	$(0.01 )	$0.84	$0.83	$—	$(0.76 )	$—	$(0.76 )
Class C
10/31/2023d	$15.69	$0.00	$1.25	$1.25	$(0.02 )	$(0.92 )	$—	$(0.94 )
10/31/2022d	$17.57	$(0.22 )	$(1.46 )	$(1.68 )	$—	$(0.20 )	$—	$(0.20 )
10/31/2021	$15.62	$(0.20 )	$2.51	$2.31	$—	$(0.36 )	$—	$(0.36 )
10/31/2020	$14.49	$(0.17 )	$1.65	$1.48	$—	$(0.35 )	$—	$(0.35 )
10/31/2019f	$14.53	$(0.12 )	$0.84	$0.72	$—	$(0.76 )	$—	$(0.76 )
U.S. Equity Index PutWrite Strategy Fund
Institutional Class
10/31/2023	$9.98	$0.58	$0.55	$1.13	$(0.63 )	$—	$(0.01 )	$(0.64 )
10/31/2022	$13.84	$0.32	$(1.61 )	$(1.29 )	$(0.28 )	$(2.29 )	$—	$(2.57 )
10/31/2021	$10.93	$0.01	$2.92	$2.93	$(0.01 )	$(0.01 )	$—	$(0.02 )
10/31/2020	$11.28	$0.14	$0.10	$0.24	$(0.16 )	$(0.43 )	$(0.00 )	$(0.59 )
10/31/2019	$10.65	$0.18	$0.66	$0.84	$(0.21 )	$—	$—	$(0.21 )
Class R6
10/31/2023	$9.99	$0.59	$0.55	$1.14	$(0.64 )	$—	$(0.01 )	$(0.65 )
10/31/2022	$13.85	$0.32	$(1.60 )	$(1.28 )	$(0.29 )	$(2.29 )	$—	$(2.58 )
10/31/2021	$10.93	$0.02	$2.93	$2.95	$(0.02 )	$(0.01 )	$—	$(0.03 )
10/31/2020	$11.29	$0.14	$0.10	$0.24	$(0.17 )	$(0.43 )	$(0.00 )	$(0.60 )
10/31/2019	$10.66	$0.19	$0.66	$0.85	$(0.22 )	$—	$—	$(0.22 )

See Notes to Financial Highlights

63

 

 

Net Asset Value, End of Year	Total Returnb	Net Assets, End of Year (in millions)	Ratio of Gross Expenses to Average Net Assetsc	Ratio of Gross Expenses to Average Net Assets (excluding dividend and interest expense relating to short sales)c	Ratio of Net Expenses to Average Net Assets	Ratio of Net Expenses to Average Net Assets (excluding dividend and interest expense relating to short sales)	Ratio of Net Investment Income/ (Loss) to Average Net Assets	Portfolio Turnover Rate (including securities sold short)	Portfolio Turnover Rate (excluding securities sold short)
$16.84	9.52 %e	$5,937.9	1.28 %	1.27 %	1.28 %	1.27 %	1.12 %	54 %	33 %
$16.45	(8.63 )%e	$5,434.6	1.68 %	1.28 %	1.68 %	1.28 %	(0.14 )%	76 %	49 %
$18.21	16.27 %e	$5,191.6	1.59 %	1.28 %	1.59 %	1.28 %	(0.10 )%	60 %	49 %
$16.00	11.68 %e	$3,631.6	1.80 %	1.30 %	1.80 %	1.30 %	(0.08 )%	81 %	60 %
$14.67	6.98 %e	$2,098.0	1.78 %	1.33 %	1.78 %	1.33 %	0.28 %	66 %	47 %
$16.60	9.15 %e	$134.3	1.66 %	1.64 %	1.66 %	1.64 %	0.75 %	54 %	33 %
$16.20	(8.96 )%e	$132.0	2.05 %	1.64 %	2.05 %	1.64 %	(0.53 )%	76 %	49 %
$18.00	15.82 %e	$158.9	1.96 %	1.64 %	1.96 %	1.64 %	(0.46 )%	60 %	49 %
$15.88	11.31 %e	$95.6	2.15 %	1.67 %	2.15 %	1.67 %	(0.43 )%	81 %	60 %
$14.61	6.54 %e	$63.6	2.13 %	1.69 %	2.13 %	1.69 %	(0.08 )%	66 %	47 %
$16.00	8.34 %e	$45.1	2.40 %	2.39 %	2.40 %	2.39 %	0.00 %	54 %	33 %
$15.69	(9.64 )%e	$48.0	2.79 %	2.39 %	2.79 %	2.39 %	(1.26 )%	76 %	49 %
$17.57	14.98 %e	$57.1	2.71 %	2.39 %	2.71 %	2.39 %	(1.20 )%	60 %	49 %
$15.62	10.42 %e	$55.3	2.90 %	2.41 %	2.90 %	2.41 %	(1.14 )%	81 %	60 %
$14.49	5.79 %e	$61.4	2.88 %	2.44 %	2.88 %	2.44 %	(0.82 )%	66 %	47 %
$10.47	11.53 %	$317.1	0.70 %	0.70 %g	0.65 %	0.65 %g	5.49 %	19 %	19 %g
$9.98	(11.22 )%	$293.4	0.70 %	0.70 %g	0.65 %	0.65 %g	2.87 %	43 %	43 %g
$13.84	26.82 %	$287.2	0.69 %	0.69 %g	0.65 %	0.65 %g	0.09 %	38 %	38 %g
$10.93	2.22 %	$235.6	0.74 %	0.74 %g	0.66 %	0.66 %g	1.31 %	41 %	41 %g
$11.28	7.99 %	$236.8	0.76 %	0.76 %g	0.65 %	0.65 %g	1.65 %	31 %	31 %g
$10.48	11.62 %	$148.2	0.61 %	0.61 %g	0.55 %	0.55 %g	5.63 %	19 %	19 %g
$9.99	(11.16 )%	$166.8	0.60 %	0.60 %g	0.55 %	0.55 %g	2.88 %	43 %	43 %g
$13.85	27.01 %	$201.9	0.59 %	0.59 %g	0.55 %	0.55 %g	0.17 %	38 %	38 %g
$10.93	2.23 %	$103.5	0.64 %	0.64 %g	0.55 %	0.55 %g	1.31 %	41 %	41 %g
$11.29	8.08 %	$17.7	0.66 %	0.66 %g	0.56 %	0.56 %g	1.75 %	31 %	31 %g

 

64

Notes to Financial Highlights Alternative Funds  

  

a	Calculated based on the average number of shares outstanding during each fiscal period.
b	Total return based on per share NAV reflects the effects of changes in NAV on the performance of each Fund during each fiscal period. Returns assume income dividends and other distributions, if any, were reinvested, but do not reflect the effect of sales charges. Results represent past performance and do not indicate future results. Current returns may be lower or higher than the performance data quoted. Investment returns and principal will fluctuate and shares, when redeemed, may be worth more or less than original cost. Total return would have been lower if Management had not reimbursed and/or waived certain expenses. Total return would have been higher if Management had not recouped previously reimbursed and/or waived expenses.
c	Represents the annualized ratios of net expenses to average daily net assets if Management had not reimbursed certain expenses and/or waived a portion of the investment management fee.
d	Consolidated financial highlights. See Note A in the Notes to  Financial Statements.
e	The class action proceeds listed in Note A of the Notes to Financial Statements, if any, had no impact on the Funds’ total returns for the year ended October 31, 2023. The class action proceeds received in 2022, 2021, 2020 and 2019 had no impact on the Funds’ total returns for the years ended October 31, 2022, 2021, 2020 and 2019, respectively.
f	After the close of business on December 7, 2018, Long Short's Class A and Class C shares underwent a stock split. The per share data presented here has been retroactively adjusted to reflect this split.
g	U.S. Equity Index PutWrite Strategy did not engage in short sales.

65

Report of Independent Registered Public Accounting Firm

To the Shareholders of Neuberger Berman Long Short Fund and Neuberger Berman U.S. Equity Index PutWrite Strategy Fund and the Board of Trustees of Neuberger Berman Alternative Funds 

Opinion on the Financial Statements

We have audited the accompanying consolidated statement of assets and liabilities of Neuberger Berman Long Short Fund (one of the series constituting the Neuberger Berman Alternatives Funds (the "Trust")), including the consolidated schedule of investments, as of October 31, 2023, and the related consolidated statements of operations and changes in net assets, and the consolidated financial highlights for each of the periods indicated in the table below and the related notes (collectively referred to as the "consolidated financial statements"). We have audited the accompanying statement of assets and liabilities of Neuberger Berman U.S. Equity Index PutWrite Strategy Fund (together with Neuberger Berman Long Short Fund, referred to as the "Funds") (one of the series constituting the Trust), including the schedule of investments, as of October 31, 2023, and the related statements of operations and changes in net assets, and the financial highlights for each of the periods indicated in the table below and the related notes (together with the consolidated financial statements, referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position, or the consolidated financial position, of each of the Funds (two of the series constituting Neuberger Berman Alternative Funds) at October 31, 2023, and the results or the consolidated results of their operations, changes in net assets and financial highlights for each of the periods indicated in the table below, in conformity with U.S. generally accepted accounting principles. The accompanying financial highlights of the Neuberger Berman Long Short Fund for each of the periods in the three years ended October 31, 2021 were audited by another independent registered public accounting firm whose report, dated December 21, 2021, expressed an unqualified opinion on the financial statements containing those financial highlights. 

Individual fund constituting Neuberger Berman Alternative Funds	Statement of operations	Statements of changes in net assets	Financial highlights
Neuberger Berman U.S. Equity Index PutWrite Strategy Fund	For the year ended October 31, 2023	For each of the two years in the period ended October 31, 2023	For each of the five years in the period ended October 31, 2023
Neuberger Berman Long Short Fund	For the year ended October 31, 2023	For each of the two years in the period ended October 31, 2023	For each of the two years in the period ended October 31, 2023

Basis for Opinion

These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on each of the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.  The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.

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Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2023, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

We have served as the auditor of one or more Neuberger Berman investment companies since 1954.

Boston, Massachusetts
December 22, 2023

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Directory

Investment Manager and Administrator

Neuberger Berman Investment Advisers LLC
1290 Avenue of the Americas
New York, NY 10104-0002
Shareholder Services
800.877.9700 or 212.476.8800
Intermediary Client Services 800.366.6264

Distributor

Neuberger Berman BD LLC
1290 Avenue of the Americas
New York, NY 10104-0002
Shareholder Services
800.877.9700 or 212.476.8800
Intermediary Client Services 800.366.6264

Custodian

State Street Bank and Trust Company
One Congress Street, Suite 1
Boston, MA 02114-2016

Shareholder Servicing Agent

SS&C Global Investor & Distribution Solutions, Inc.
430 West 7th Street, Suite 219189
Kansas City, MO 64105-1407

For Institutional Class Shareholders address correspondence to:

Neuberger Berman Funds
PO Box 219189
Kansas City, MO 64121-9189
Intermediary Client Services 800.366.6264

For Class A, Class C and Class R6 Shareholders:

Please contact your investment provider

Legal Counsel

K&L Gates LLP
1601 K Street, NW
Washington, DC 20006-1600

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116

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Trustees and Officers

The following tables set forth information concerning the Trustees and Officers of the Funds. All persons named as Trustees and Officers also serve in similar capacities for other funds administered or managed by NBIA. The Funds’ Statement of Additional Information includes additional information about the Trustees as of the time of the Funds’ most recent public offering and is available upon request, without charge, by calling (800) 877-9700.

Information about the Board of Trustees 

Name, (Year of Birth), and Address(1)	Position(s) and Length of Time Served(2)	Principal Occupation(s)(3)	Number of Funds in Fund Complex Overseen by Fund Trustee	Other Directorships Held Outside Fund Complex by Fund Trustee(3)
Independent Fund Trustees
Michael J. Cosgrove (1949)	Trustee since 2015	President, Carragh Consulting USA, since 2014; formerly, Executive, General Electric Company, 1970 to 2014, including President, Mutual Funds and Global Investment Programs, GE Asset Management, 2011 to 2014, President and Chief Executive Officer, Mutual Funds and Intermediary Business, GE Asset Management, 2007 to 2011, President, Institutional Sales and Marketing, GE Asset Management, 1998 to 2007, and Chief Financial Officer, GE Asset Management, and Deputy Treasurer, GE Company, 1988 to 1993.	47	Member of Advisory Board, Burke Neurological Institute, since 2021; Parish Councilor, St. Pius X, since 2021; formerly, Director, America Press, Inc. (not-for-profit Jesuit publisher), 2015 to 2021; formerly, Director, Fordham University, 2001 to 2018; formerly, Director, The Gabelli Go Anywhere Trust, June 2015 to June 2016; formerly, Director, Skin Cancer Foundation (not-for-profit), 2006 to 2015; formerly, Director, GE Investments Funds, Inc., 1997 to 2014; formerly, Trustee, GE Institutional Funds, 1997 to 2014; formerly, Director, GE Asset Management, 1988 to 2014; formerly, Director, Elfun Trusts, 1988 to 2014; formerly, Trustee, GE Pension & Benefit Plans, 1988 to 2014; formerly, Member of Board of Governors, Investment Company Institute.

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Name, (Year of Birth), and Address(1)	Position(s) and Length of Time Served(2)	Principal Occupation(s)(3)	Number of Funds in Fund Complex Overseen by Fund Trustee	Other Directorships Held Outside Fund Complex by Fund Trustee(3)
Marc Gary (1952)	Trustee since 2015	Executive Vice Chancellor Emeritus, The Jewish Theological Seminary, since 2020; formerly, Executive Vice Chancellor and Chief Operating Officer, The Jewish Theological Seminary, 2012 to 2020; formerly, Executive Vice President and General Counsel, Fidelity Investments, 2007 to 2012; formerly, Executive Vice President and General Counsel, BellSouth Corporation, 2004 to 2007; formerly, Vice President and Associate General Counsel, BellSouth Corporation, 2000 to 2004; formerly, Associate, Partner, and National Litigation Practice Co-Chair, Mayer, Brown LLP, 1981 to 2000; formerly, Associate Independent Counsel, Office of Independent Counsel, 1990 to 1992.	47	Chair and Director, USCJ Supporting Foundation, since 2021; Director, UJA Federation of Greater New York, since 2019; Trustee, The Jewish Theological Seminary, since 2015; Director, Lawyers Committee for Civil Rights Under Law (not-for-profit), since 2005; formerly, Director, Legility, Inc. (privately held for-profit company), 2012 to 2021; formerly, Director, Equal Justice Works (not-for-profit), 2005 to 2014; formerly, Director, Corporate Counsel Institute, Georgetown University Law Center, 2007 to 2012; formerly, Director, Greater Boston Legal Services (not-for-profit), 2007 to 2012.

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Name, (Year of Birth), and Address(1)	Position(s) and Length of Time Served(2)	Principal Occupation(s)(3)	Number of Funds in Fund Complex Overseen by Fund Trustee	Other Directorships Held Outside Fund Complex by Fund Trustee(3)
Martha C. Goss (1949)	Trustee since 2007	Formerly, President, Woodhill Enterprises Inc./Chase Hollow Associates LLC (personal investment vehicle), 2006 to 2020; formerly, Consultant, Resources Global Professionals (temporary staffing), 2002 to 2006; formerly, Chief Financial Officer, Booz-Allen & Hamilton, Inc., 1995 to 1999; formerly, Enterprise Risk Officer, Prudential Insurance, 1994 to 1995; formerly, President, Prudential Asset Management Company, 1992 to 1994; formerly, President, Prudential Power Funding (investments in electric and gas utilities and alternative energy projects), 1989 to 1992; formerly, Treasurer, Prudential Insurance Company, 1983 to 1989.	47	Director, American Water (water utility), since 2003; Director, Allianz Life of New York (insurance), since 2005; formerly, Director, Berger Group Holdings, Inc. (engineering consulting firm), 2013 to 2018; formerly, Director, Financial Women’s Association of New York (not-for-profit association), 1987 to 1996, and 2003 to 2019; Trustee Emerita, Brown University, since 1998; Director, Museum of American Finance (not-for-profit), since 2013; formerly, Non-Executive Chair and Director, Channel Reinsurance (financial guaranty reinsurance), 2006 to 2010; formerly, Director, Ocwen Financial Corporation (mortgage servicing), 2005 to 2010; formerly, Director, Claire’s Stores, Inc. (retailer), 2005 to 2007; formerly, Director, Parsons Brinckerhoff Inc. (engineering consulting firm), 2007 to 2010; formerly, Director, Bank Leumi (commercial bank), 2005 to 2007; formerly, Advisory Board Member, Attensity (software developer), 2005 to 2007; formerly, Director, Foster Wheeler Manufacturing, 1994 to 2004; formerly, Director, Dexter Corp. (Manufacturer of Non-Wovens, Plastics, and Medical Supplies), 1992 to 2001.

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Name, (Year of Birth), and Address(1)	Position(s) and Length of Time Served(2)	Principal Occupation(s)(3)	Number of Funds in Fund Complex Overseen by Fund Trustee	Other Directorships Held Outside Fund Complex by Fund Trustee(3)
Ami Kaplan (1960)	Trustee since 2023	Formerly, Partner, Deloitte LLP, 1982 to 2023, including Vice Chair, 2017 to 2020; formerly, President and Board Chair, Women's Forum of New York, 2014 to 2016.	47	None.
Michael M. Knetter (1960)	Trustee since 2007	President and Chief Executive Officer, University of Wisconsin Foundation, since 2010; formerly, Dean, School of Business, University of Wisconsin - Madison; formerly, Professor of International Economics and Associate Dean, Amos Tuck School of Business - Dartmouth College, 1998 to 2002.	47	Director, 1WS Credit Income Fund, since 2018; Board Member, American Family Insurance (a mutual company, not publicly traded), since March 2009; formerly, Trustee, Northwestern Mutual Series Fund, Inc., 2007 to 2011; formerly, Director, Wausau Paper, 2005 to 2011; formerly, Director, Great Wolf Resorts, 2004 to 2009.
Deborah C. McLean (1954)	Trustee since 2015	Member, Circle Financial Group (private wealth management membership practice), since 2011; Managing Director, Golden Seeds LLC (an angel investing group), since 2009; Adjunct Professor (Corporate Finance), Columbia University School of International and Public Affairs, since 2008; formerly, Visiting Assistant Professor, Fairfield University, Dolan School of Business, Fall 2007; formerly, Adjunct Associate Professor of Finance, Richmond, The American International University in London, 1999 to 2007.	47	Board Member, The Maritime Aquarium at Norwalk, since 2020; Board Member, Norwalk Community College Foundation, since 2014; Dean’s Advisory Council, Radcliffe Institute for Advanced Study, since 2014; formerly, Director and Treasurer, At Home in Darien (not-for-profit), 2012 to 2014; formerly, Director, National Executive Service Corps (not-for-profit), 2012 to 2013; formerly, Trustee, Richmond, The American International University in London, 1999 to 2013.

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Name, (Year of Birth), and Address(1)	Position(s) and Length of Time Served(2)	Principal Occupation(s)(3)	Number of Funds in Fund Complex Overseen by Fund Trustee	Other Directorships Held Outside Fund Complex by Fund Trustee(3)
George W. Morriss (1947)	Trustee since 2007	Formerly, Adjunct Professor, Columbia University School of International and Public Affairs, 2012 to 2018; formerly, Executive Vice President and Chief Financial Officer, People's United Bank, Connecticut (a financial services company), 1991 to 2001.	47	Director, 1WS Credit Income Fund; Chair, Audit Committee, since 2018; Director and Chair, Thrivent Church Loan and Income Fund, since 2018; formerly, Trustee, Steben Alternative Investment Funds, Steben Select Multi-Strategy Fund, and Steben Select Multi-Strategy Master Fund, 2013 to 2017; formerly, Treasurer, National Association of Corporate Directors, Connecticut Chapter, 2011 to 2015; formerly, Manager, Larch Lane Multi-Strategy Fund complex (which consisted of three funds), 2006 to 2011; formerly, Member, NASDAQ Issuers’ Affairs Committee, 1995 to 2003.
Tom D. Seip (1950)	Trustee since 2000; Chairman of the Board since 2008; formerly, Lead Independent Trustee from 2006 to 2008	Formerly, Managing Member, Ridgefield Farm LLC (a private investment vehicle), 2004 to 2016; formerly, President and CEO, Westaff, Inc. (temporary staffing), May 2001 to January 2002; formerly, Senior Executive, The Charles Schwab Corporation, 1983 to 1998, including Chief Executive Officer, Charles Schwab Investment Management, Inc.; Trustee, Schwab Family of Funds and Schwab Investments, 1997 to 1998; and Executive Vice President-Retail Brokerage, Charles Schwab & Co., Inc., 1994 to 1997.	47	Trustee, University of Maryland, Shore Regional Health System, since 2020; formerly, Director, H&R Block, Inc. (tax services company), 2001 to 2018; formerly, Director, Talbot Hospice Inc., 2013 to 2016; formerly, Chairman, Governance and Nominating Committee, H&R Block, Inc., 2011 to 2015; formerly, Chairman, Compensation Committee, H&R Block, Inc., 2006 to 2010; formerly, Director, Forward Management, Inc. (asset management company), 1999 to 2006.
Franklyn E. Smith (1961)	Trustee since 2023	Formerly, Partner, PricewaterhouseCoopers LLP, 1989 to 2021.	47	Director, Zurich American Insurance Company, since 2023.

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Name, (Year of Birth), and Address(1)	Position(s) and Length of Time Served(2)	Principal Occupation(s)(3)	Number of Funds in Fund Complex Overseen by Fund Trustee	Other Directorships Held Outside Fund Complex by Fund Trustee(3)
James G. Stavridis (1955)	Trustee since 2015	Vice Chairman Global Affairs, The Carlyle Group, since 2018; Commentator, NBC News, since 2015; formerly, Dean, Fletcher School of Law and Diplomacy, Tufts University, 2013 to 2018; formerly, Admiral, United States Navy, 1976 to 2013, including Supreme Allied Commander, NATO and Commander, European Command, 2009 to 2013, and Commander, United States Southern Command, 2006 to 2009.	47	Director, Fortinet (cybersecurity), since 2021; Director, Ankura, since 2020; Director, Vigor Shipyard, since 2019; Director, Rockefeller Foundation, since 2018; Director, American Water (water utility), since 2018; Director, NFP Corp. (insurance broker and consultant), since 2017; Director, Onassis Foundation, since 2014; Director, Michael Baker International (construction) since 2014; Director, Vertical Knowledge, LLC, since 2013; formerly, Director, U.S. Naval Institute, 2014 to 2019; formerly, Director, Navy Federal Credit Union, 2000 to 2002; formerly, Director, BMC Software Federal, LLC, 2014 to 2019.

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Name, (Year of Birth), and Address(1)	Position(s) and Length of Time Served(2)	Principal Occupation(s)(3)	Number of Funds in Fund Complex Overseen by Fund Trustee	Other Directorships Held Outside Fund Complex by Fund Trustee(3)
Fund Trustees who are "Interested Persons"
Joseph V. Amato* (1962)	Chief Executive Officer and President since 2018 and Trustee since 2009	President and Director, Neuberger Berman Group LLC, since 2009; President and Chief Executive Officer, Neuberger Berman BD LLC and Neuberger Berman Holdings LLC (including its predecessor, Neuberger Berman Inc.), since 2007; Chief Investment Officer (Equities) and President (Equities), NBIA (formerly, Neuberger Berman Fixed Income LLC and including predecessor entities), since 2007, and Board Member of NBIA since 2006; formerly, Global Head of Asset Management of Lehman Brothers Holdings Inc.’s ("LBHI") Investment Management Division, 2006 to 2009; formerly, member of LBHI’s Investment Management Division’s Executive Management Committee, 2006 to 2009; formerly, Managing Director, Lehman Brothers Inc. ("LBI"), 2006 to 2008; formerly, Chief Recruiting and Development Officer, LBI, 2005 to 2006; formerly, Global Head of LBI’s Equity Sales and a Member of its Equities Division Executive Committee, 2003 to 2005; President and Chief Executive Officer, twelve registered investment companies for which NBIA acts as investment manager and/or administrator.	47	Member of Board of Advisors, McDonough School of Business, Georgetown University, since 2001; Member of New York City Board of Advisors, Teach for America, since 2005; Trustee, Montclair Kimberley Academy (private school), since 2007; Member of Board of Regents, Georgetown University, since 2013.

(1)

The business address of each listed person is 1290 Avenue of the Americas, New York, NY 10104.

(2)   Pursuant to the Trust's Amended and Restated Trust Instrument ("Trust Instrument"), subject to any limitations on the term of service imposed by the By-Laws or any retirement policy adopted by the Fund Trustees, each Fund Trustee shall hold office for life or until his or her successor is elected or the Trust

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terminates; except that (a) any Fund Trustee may resign by delivering a written resignation; (b) any Fund Trustee may be removed with or without cause at any time by a written instrument signed by at least two-thirds of the other Fund Trustees; (c) any Fund Trustee who requests to be retired, or who has become unable to serve, may be retired by a written instrument signed by a majority of the other Fund Trustees; and (d) any Fund Trustee may be removed at any shareholder meeting by a vote of at least two-thirds of the outstanding shares.

(3)

Except as otherwise indicated, each individual has held the positions shown during at least the last five years.

*

Indicates a Fund Trustee who is an "interested person" within the meaning of the 1940 Act. Mr. Amato is an interested person of the Trust by virtue of the fact that he is an officer of NBIA and/or its affiliates.

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Information about the Officers of the Trust 

Name, (Year of Birth), and Address(1)	Position(s) and Length of Time Served(2)	Principal Occupation(s)(3)
Claudia A. Brandon (1956)	Executive Vice President since 2008 and Secretary since inception	Senior Vice President, Neuberger Berman, since 2007 and Employee since 1999; Senior Vice President, NBIA, since 2008 and Assistant Secretary since 2004; formerly, Vice President, Neuberger Berman, 2002 to 2006; formerly, Vice President, Mutual Fund Board Relations, NBIA, 2000 to 2008; formerly, Vice President, NBIA, 1986 to 1999 and Employee, 1984 to 1999; Executive Vice President and Secretary, thirty-three registered investment companies for which NBIA acts as investment manager and/or administrator.
Agnes Diaz (1971)	Vice President since 2013	Senior Vice President, Neuberger Berman, since 2012; Senior Vice President, NBIA, since 2012 and Employee since 1996; formerly, Vice President, Neuberger Berman, 2007 to 2012; Vice President, twelve registered investment companies for which NBIA acts as investment manager and/or administrator.
Anthony DiBernardo (1979)	Assistant Treasurer since 2011	Senior Vice President, Neuberger Berman, since 2014; Senior Vice President, NBIA, since 2014, and Employee since 2003; formerly, Vice President, Neuberger Berman, 2009 to 2014; Assistant Treasurer, twelve registered investment companies for which NBIA acts as investment manager and/or administrator.
Savonne L. Ferguson (1973)	Chief Compliance Officer since 2018	Senior Vice President, Chief Compliance Officer, Mutual Funds, and Associate General Counsel, NBIA, since November 2018; formerly, Vice President, T. Rowe Price Group, Inc., 2018; Vice President and Senior Legal Counsel, T. Rowe Price Associates, Inc., 2014 to 2018; Vice President and Director of Regulatory Fund Administration, PNC Capital Advisors, LLC, 2009 to 2014; Secretary, PNC Funds and PNC Advantage Funds, 2010 to 2014; Chief Compliance Officer, thirty-three registered investment companies for which NBIA acts as investment manager and/or administrator.
Corey A. Issing (1978)	Chief Legal Officer since 2016 (only for purposes of sections 307 and 406 of the Sarbanes-Oxley Act of 2002)	General Counsel, Mutual Funds, since 2016 and Managing Director, NBIA, since 2017; formerly, Associate General Counsel, 2015 to 2016; Counsel, 2007 to 2015; Senior Vice President, 2013 to 2016; Vice President, 2009 to 2013; Chief Legal Officer (only for purposes of sections 307 and 406 of the Sarbanes-Oxley Act of 2002), thirty-three registered investment companies for which NBIA acts as investment manager and/or administrator.
Sheila R. James (1965)	Assistant Secretary since inception	Senior Vice President, Neuberger Berman, since 2023 and Employee since 1999; Senior Vice President, NBIA, since 2023; formerly, Vice President, Neuberger Berman, 2008 to 2023; Assistant Vice President, Neuberger Berman, 2007; Employee, NBIA, 1991 to 1999; Assistant Secretary, thirty-three registered investment companies for which NBIA acts as investment manager and/or administrator.

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Name, (Year of Birth), and Address(1)	Position(s) and Length of Time Served(2)	Principal Occupation(s)(3)
Brian Kerrane (1969)	Chief Operating Officer since 2015 and Vice President since 2008	Managing Director, Neuberger Berman, since 2013; Chief Operating Officer, Mutual Funds, and Managing Director, NBIA, since 2015; formerly, Senior Vice President, Neuberger Berman, 2006 to 2014; Vice President, NBIA, 2008 to 2015 and Employee since 1991; Chief Operating Officer, twelve registered investment companies for which NBIA acts as investment manager and/or administrator; Vice President, thirty-three registered investment companies for which NBIA acts as investment manager and/or administrator.
Anthony Maltese (1959)	Vice President since 2015	Senior Vice President, Neuberger Berman, since 2014 and Employee since 2000; Senior Vice President, NBIA, since 2014; Vice President, twelve registered investment companies for which NBIA acts as investment manager and/or administrator.
Josephine Marone (1963)	Assistant Secretary since 2017	Senior Paralegal, Neuberger Berman, since 2007 and Employee since 2007; Assistant Secretary, thirty-three registered investment companies for which NBIA acts as investment manager and/or administrator.
Owen F. McEntee, Jr. (1961)	Vice President since 2008	Vice President, Neuberger Berman, since 2006; Vice President, NBIA, since 2006 and Employee since 1992; Vice President, twelve registered investment companies for which NBIA acts as investment manager and/or administrator.
John M. McGovern (1970)	Treasurer and Principal Financial and Accounting Officer since inception	Managing Director, Neuberger Berman, since 2022; Senior Vice President, Neuberger Berman, 2007 to 2021; Senior Vice President, NBIA, since 2007 and Employee since 1993; formerly, Vice President, Neuberger Berman, 2004 to 2006; formerly, Assistant Treasurer, 2002 to 2005; Treasurer and Principal Financial and Accounting Officer, twelve registered investment companies for which NBIA acts as investment manager and/or administrator.
Frank Rosato (1971)	Assistant Treasurer since inception	Vice President, Neuberger Berman, since 2006; Vice President, NBIA, since 2006 and Employee since 1995; Assistant Treasurer, twelve registered investment companies for which NBIA acts as investment manager and/or administrator.
Daniel Tracer (1987)	Anti-Money Laundering Compliance Officer since 2023	Senior Vice President and Head of Financial Regulation, Neuberger Berman, since February 2023; Assistant United States Attorney, Southern District of New York, 2016 to 2023; Trial Attorney, Department of Justice Antitrust Division, 2012 to 2015; Senior Anti-Money Laundering Compliance Officer, five registered investment companies for which NBIA acts as investment manager and/or administrator.

(1)

The business address of each listed person is 1290 Avenue of the Americas, New York, NY 10104.

(2)   Pursuant to the By-Laws of the Trust, each officer elected by the Fund Trustees shall hold office until his or her successor shall have been elected and qualified or until his or her earlier death, inability to serve, or resignation. Officers serve at the pleasure of the Fund Trustees and may be removed at any time with or without cause.

(3)

Except as otherwise indicated, each individual has held the positions shown during at least the last five years.

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Proxy Voting Policies and Procedures

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to portfolio securities is available, without charge, by calling 800-877-9700 (toll-free) and on the SEC’s website at www.sec.gov. Information regarding how the Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is also available upon request, without charge, by calling 800-877-9700 (toll-free), on the SEC’s website at www.sec.gov, and on Neuberger Berman’s website at www.nb.com.

Quarterly Portfolio Schedule

The Trust files a complete schedule of portfolio holdings for each Fund with the SEC for the first and third quarters of each fiscal year as an exhibit to its report on Form N-PORT. The Trust’s Form N-PORT is available on the SEC’s website at www.sec.gov. The portfolio holdings information on Form N-PORT is available upon request, without charge, by calling 800-877-9700 (toll-free).

Liquidity Risk Management Program

Consistent with Rule 22e-4 under the Investment Company Act of 1940 (the "Liquidity Rule"), as amended, the Funds have established a liquidity risk management program (the "Program"). The Program seeks to assess and manage the Funds’ liquidity risk, which is defined as the risk that a Fund is unable to meet investor redemption requests without significantly diluting the remaining investors' interests in a Fund. The Board has approved the designation of NBIA Funds' Liquidity Committee, comprised of NBIA employees, as the program administrator (the "Program Administrator"). The Program Administrator is responsible for implementing and monitoring the Program and utilizes NBIA personnel to assess and review, on an ongoing basis, the Funds' liquidity risk.

The Program includes a number of elements that support the management and assessment of liquidity risk, including an annual assessment of the Funds' liquidity risk factors and the periodic classification (or re-classification, as necessary) of the Funds’ investments into buckets (highly liquid, moderately liquid, less liquid and illiquid) that reflect the Program Administrator's assessment of the investments' liquidity under current market conditions, which for the relevant period included, among other factors, market volatility as a result of geopolitical tensions (e.g., Russia’s invasion of Ukraine) and rising inflation. The Program Administrator also utilizes information about the Funds’ investment strategy, the characteristics of the Funds’ shareholder base and historical redemption activity.

The Program Administrator provided the Board with a written report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation from April 1, 2022 through March 31, 2023. During the period covered by this report, the Program Administrator reported that the Program effectively assisted the Program Administrator in monitoring whether a Fund maintained a level of liquidity appropriate for its shareholder base and historical redemption activity.

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Board Consideration of the Management Agreement

On an annual basis, the Board of Trustees (the "Board" or "Trustees") of Neuberger Berman Alternative Funds (the "Trust"), including the Trustees who are not "interested persons" of the Trust or of Neuberger Berman Investment Advisers LLC ("Management") (including its affiliates), as such term is defined under the Investment Company Act of 1940, as amended ("1940 Act"), ("Independent Fund Trustees"), considers whether to continue the management agreement with Management (the "Agreement")  with respect to Neuberger Berman Long Short Fund and Neuberger Berman U.S. Equity Index PutWrite Strategy Fund (each a "Fund"). (This report does not include Neuberger Berman Absolute Return Multi-Manager Fund, which is the subject of a separate report.) Throughout the process, the Independent Fund Trustees are advised by counsel that is experienced in 1940 Act matters and that is independent of Management ("Independent Counsel"). At a meeting held on October 5, 2023, the Board, including the Independent Fund Trustees, approved the continuation of the Agreement for each Fund.  In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services provided to each Fund and its shareholders; (ii) a comparison of each Fund’s performance, fees and expenses relative to various peers; (iii) the costs of the services provided by, and the estimated profit or loss by Management from its relationships with each Fund; (iv) any apparent or anticipated economies of scale in relation to the services Management provides to each Fund and whether any such economies of scale are shared with Fund shareholders; and (v) any "fall-out" benefits likely to accrue to Management and its affiliates from their relationship with each Fund.

In evaluating the Agreement with respect to each Fund, the Board, including the Independent Fund Trustees, reviewed extensive materials provided by Management in response to questions submitted by the Independent Fund Trustees and Independent Counsel, which the Contract Review Committee annually considers and updates.  It also met with senior representatives of Management regarding its personnel, operations, and profitability as they relate to the Funds.  The annual contract review extends over at least two regular meetings of the Board to ensure that Management has time to respond to any questions the Independent Fund Trustees may have on their initial review of the materials and that the Independent Fund Trustees have time to consider those responses.

In connection with its deliberations, the Board also considered the broad range of information relevant to the annual contract review that is provided to the Board (including its various standing committees) at meetings throughout the year. The Board established the Contract Review Committee, which is comprised solely of Independent Fund Trustees, to assist in its evaluation and analysis of materials for the annual contract review.  The Board has also established other committees that focus throughout the year on specific areas relevant to the annual contract review, such as Fund performance or compliance matters, and that are charged with specific responsibilities regarding the annual contract review.  Those committees provide reports to the full Board, including the members of the Contract Review Committee, which consider that information as part of the annual contract review process.

The Independent Fund Trustees received from Independent Counsel a memorandum discussing the legal standards for their consideration of the proposed continuation of the Agreement. During the course of the year and during their deliberations regarding the annual contract review, the Contract Review Committee and the Independent Fund Trustees met with Independent Counsel separately from representatives of Management.

Provided below is a description of the Board’s contract approval process and material factors that the Board considered at its meetings regarding renewals of the Agreement and the compensation to be paid thereunder. In connection with its approval of the continuation of the Agreement, the Board evaluated the terms of the Agreement, the overall fairness of the Agreement to each Fund, and whether the Agreement was in the best interests of each respective Fund and its shareholders. The Board’s determination to approve the continuation of the Agreement was based on a comprehensive consideration of all information provided to the Board throughout the year and specifically in connection with the annual contract review. The Board considered each Fund’s investment management agreement separately from those of the other Funds.

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This description is not intended to include all of the factors considered by the Board. The Board members did not identify any particular information or factor that was all-important or controlling, and each Trustee may have attributed different weights to the various factors. The Board focused on the costs and benefits of the Agreement to each Fund and, through the Fund, its shareholders.

Nature, Extent, and Quality of Services

With respect to the nature, extent, and quality of the services provided, the Board considered the investment philosophy and decision-making processes of, and the qualifications, experience, and capabilities of, and the resources available to, the portfolio management personnel of Management who perform services for the Funds. The Board noted that Management also provides certain administrative services, including fund accounting, compliance, and shareholder support services. The Board also considered Management’s policies and practices regarding brokerage, commissions, other trading costs, and allocation of portfolio transactions, and reviewed the quality of the execution services that Management had provided. The Board also reviewed Management’s use of brokers to execute Fund transactions that provide research services to Management. Moreover, the Board considered Management’s approach to potential conflicts of interest both generally and between the Funds’ investments and those of other funds or accounts managed by Management. 

The Board recognized the extensive range of services that Management provides to the Funds beyond the investment management services. The Board noted that Management is also responsible for monitoring compliance with the Fund’s investment objectives, policies, and restrictions, as well as compliance with applicable law, including implementing rulemaking initiatives of the U.S. Securities and Exchange Commission. The Board considered that Management assumes significant ongoing entrepreneurial and business risks as the investment adviser and sponsor for the Funds, for which it is entitled to reasonable compensation. The Trustees also considered that Management’s responsibilities include continual management of investment, operational, cybersecurity, enterprise, valuation, liquidity, legal, regulatory, and compliance risks as they relate to the Funds, and the Board considers on a regular basis information regarding Management’s processes for monitoring and managing risk. In addition, the Board also noted that when Management launches a new fund or share class, it assumes entrepreneurial risk with respect to that fund or share class, until it maintains a certain level of assets, if ever, that is profitable to Management. 

The Board also reviewed and evaluated Management’s activities under its contractual obligation to oversee the Funds’ various outside service providers, including its renegotiation of certain service providers’ fees and its evaluation of service providers’ infrastructure, cybersecurity programs, compliance programs, and business continuity programs, among other matters. The Board also considered Management’s ongoing development of its own infrastructure and information technology to support the Funds through, among other things, cybersecurity, business continuity planning, and risk management.  In addition, the Board noted the positive compliance history of Management, as no significant compliance problems were reported to the Board with respect to Management. The Board also considered the general structure of the portfolio managers’ compensation and whether this structure provides appropriate incentives to act in the best interests of the Funds. The Board also considered the ability of Management to attract and retain qualified personnel to service the Funds and the plan for succession.

As in past years, the Board also considered the manner in which Management addressed various matters that arose during the year, some of them a result of developments in the broader fund industry or the regulations governing it. In addition, the Board considered actions taken by Management in response to market conditions over the past year and considered the overall performance of Management in this context.

Fund Performance

The Board requested a report from an outside consulting firm that specializes in the analysis of fund industry data that compared each Fund’s performance, along with its fees and other expenses, to various peers, including a group of industry peers ("Expense Group") and to a broader universe of funds pursuing generally similar

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strategies with the same investment classification and/or objective ("Performance Universe"). The Board considered each Fund’s performance and fees in light of the limitations inherent in the methodology for constructing such comparative groups and determining which investment companies should be included in the comparative groups, noting differences as compared to certain fund industry ranking and rating systems. The Board also considered the impact and inherent limitation on the comparisons due to the number of funds included in the Funds’ Expense Groups.

With respect to investment performance, the Board considered information regarding each Fund’s short-, intermediate- and long-term performance, as applicable, net of the Fund’s fees and expenses, on an absolute basis, relative to a benchmark index that does not deduct the fees or expenses of investing, and compared to the performance of its Expense Group and Performance Universe, each constructed by the consulting firm. The Board also reviewed performance in relation to certain measures of the degree of investment risk undertaken by the portfolio managers.

In the case of underperformance for any of the periods reported, the Board considered the magnitude and duration of that underperformance relative to the Performance Universe and/or the benchmark (e.g., the amount by which a Fund underperformed, including, for example, whether the Fund slightly underperformed or significantly underperformed its benchmark). The Board also considered Management’s responsiveness with respect to the relative performance. The Board recognized that the performance data reflects a snapshot of a period as of a particular date and that selecting a different performance period could produce significantly different results. The Board further acknowledged that long-term performance could be impacted by even one period of significant outperformance or underperformance. In this regard, the Board noted that performance, especially short-term performance, is only one of the factors that it deems relevant to its consideration of the Agreement and that, after considering all relevant factors, it determined to approve the continuation of the Agreement notwithstanding a Fund’s relative performance.

Fee Rates, Profitability, and Fall-out Benefits

With respect to the overall fairness of the Agreement, the Board considered the fee structure for each Fund under the Agreement as compared to the Expense Group provided by the consulting firm, as discussed above. The Board reviewed a comparison of each Fund’s management fee to its Expense Group. The Board noted that the comparative management fee analysis includes, in each Fund’s management fee, the separate administrative fees paid to Management. However, the Board noted that some funds in the Expense Group pay directly from fund assets for certain services that Management covers out of the administration fees for the Funds. Accordingly, the Board also considered each Fund’s total expense ratio as compared with its Expense Group as a way of taking account of these differences. 

The Board compared each Fund’s contractual and actual management fees to the median of the contractual and actual management fees, respectively, of that Fund’s Expense Group. (The actual management fees are the contractual management fees reduced by any fee waivers or other adjustments.) The Board also compared each Fund’s total expenses to the median of the total expenses of that Fund’s Expense Group.  The Board also noted that for each class of each of the Funds, the overall expense ratio is maintained through a contractual or voluntary fee cap and/or expense reimbursements by Management.

In concluding that the benefits accruing to Management and its affiliates by virtue of their relationship with each Fund were reasonable in light of the costs of providing the investment advisory and other services and the benefits accruing to that Fund, the Board reviewed specific data as to Management’s estimated profit or loss on each Fund for a recent period on a pre-tax basis without regard to distribution expenses. (The Board also reviewed data on Management’s estimated profit or loss on each Fund after distribution expenses and taxes were factored in, as indicators of the health of the business and the extent to which Management is directing its profits into the growth of the business.) 

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The Board considered the consistent cost allocation methodology that Management used in developing its estimated profitability figures. In addition, the Board engaged an independent forensic accountant to review the profitability methodology utilized by Management when preparing this information and discussed with the consultant its conclusion that Management’s process for calculating and reporting its estimated profit or loss aligned with the consultant’s guiding principles and industry practices. 

The Board further noted Management’s representation that its estimate of profitability is derived using methodology that is consistent with the methodology used to assess and/or report measures of profitability elsewhere at the firm. In addition, the Board recognized that Management’s calculations regarding its costs may not reflect all risks, including regulatory, legal, operational, cybersecurity, reputational, and, where appropriate, entrepreneurial risks, associated with offering and managing a mutual fund in the current regulatory and market environment. The Board also considered any fall-out (i.e., indirect) benefits likely to accrue to Management or its affiliates from their relationship with each Fund, such as research it may receive from broker-dealers executing the Funds’ portfolio transactions on an agency basis. The Board recognized that Management and its affiliates should be entitled to earn a reasonable level of profits for services they provide to each Fund and, based on its review, concluded that Management’s reported level of estimated profitability, if any, on each Fund was reasonable.

Information Regarding Services to Other Clients

The Board also considered whether there were other funds or separate accounts that were advised or sub-advised by Management or its affiliates with investment objectives, policies, and strategies that were similar to those of any of the Funds. In the cases where such funds or separate accounts exist, the Board compared the fees charged to the respective Fund to the fees charged to such comparable funds and/or separate accounts. The Board considered the appropriateness and reasonableness of any differences between the fees charged to a Fund and such comparable funds and/or separate accounts, and determined that differences in fees and fee structures were consistent with the differences in the management and other services provided. The Board explored with Management its assertion that although, generally, the rates of fees paid by such accounts, except other Neuberger Berman mutual funds, were lower than the fee rates paid by the corresponding Funds, the differences reflected Management’s greater level of responsibilities and significantly broader scope of services to the Funds, the more extensive regulatory obligations and risks associated with managing the Funds, and other financial considerations with respect to creation and sponsorship of the Funds.

Economies of Scale

The Board also evaluated apparent or anticipated economies of scale in relation to the services Management provides to each Fund. The Board considered whether each Fund’s fee structure provides for a reduction of payments resulting from the use of breakpoints, the size of any breakpoints in each Fund’s advisory fees, and whether any such breakpoints are set at appropriate asset levels. The Board also compared the breakpoint structure to that of the Expense Group. In addition, the Board considered the expense limitation and/or fee waiver arrangements that reduce many Funds’ expenses at some or all asset levels, which can have an effect similar to breakpoints in sharing economies of scale with shareholders and provide protection from an increase in expenses if a Fund’s assets decline.

The Trustees took into account that certain Funds do not have breakpoints in their fees. As to those Funds whose advisory fees do not have breakpoints, the Board discussed with Management the reasons why the Fund’s particular investment program was less likely than others to produce economies of scale. In addition, for Funds that do not have breakpoints, the Board considered that setting competitive fee rates and pricing a Fund to scale before it has actually experienced an increase in assets are other means of sharing potential economies of scale with shareholders.  The Board also considered that Management has provided, at no added cost to the Funds, certain additional services, including but not limited to, services required by new regulations or regulatory interpretations, services impelled by changes in the securities markets or the business landscape, and/or services

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requested by the Board. The Board considered that this is a way of sharing economies of scale with the Funds and their shareholders.

Fund-by-Fund Analysis

With regard to the investment performance of each Fund and the fees charged to each Fund, the Board considered the following information. The Performance Universes referenced in this section are those identified by the consulting firm, as discussed above, and the risk/return ratios referenced are the Sharpe ratios provided by the consulting firm. With respect to performance quintile rankings for a Fund compared to its Performance Universe, the first quintile represents the highest (best) performance and the fifth quintile represents the lowest performance. With respect to the quintile rankings for fees and total expenses (net of waivers or other adjustments, if any) for a Fund compared to its Expense Group, the first quintile represents the lowest (best) fees and/or total expenses and the fifth quintile represents the highest fees and/or total expenses. Where a Fund has more than one class of shares outstanding, information for Institutional Class has been provided as identified below. The Board reviewed the expense structures of all the other classes of shares of the Funds, some of which have higher fees and expenses that reflect their separate distribution and servicing arrangements and the differing needs of different investors. As a proxy for the class expense structure, the Board reviewed the expenses of each class for at least one Fund in the Trust in comparison to Expense Groups for those classes. The Board noted the effect of higher expenses on the performance of the other classes of shares.

• Neuberger Berman Long Short Fund (Institutional Class)—The Board considered that, based on performance data for the periods ended December 31, 2022: (1) as compared to its benchmark, the Fund’s performance was lower for the 1-year period and higher for the 3-, 5-, and 10-year periods; and (2) as compared to its Performance Universe, the Fund’s performance was in the third quintile for the 1- and 10-year periods and the second quintile for the 3-and 5-year periods. The Board considered that, as compared to its Expense Group, the Fund’s contractual management fee and the actual management fee ranked in the third quintile, and total expenses ranked in the first quintile.

• Neuberger Berman U.S. Equity Index PutWrite Strategy Fund (Institutional Class)—The Board considered that, based on performance data for the periods ended December 31, 2022: (1) as compared to its benchmark utilized since February 2022, the Fund’s performance was lower for the 1-year period and higher for the 3-, and 5-year periods; and (2) as compared to its Performance Universe, the Fund’s performance was in the fourth quintile for the 1-year period, the second quintile for the 3-year period, and the third quintile for the 5-year period. The Fund was launched in 2016 and therefore does not have 10-year performance.  In addition, the Board noted that in February 2022, Management added a new portfolio manager, adjusted its strategy, and changed its benchmark index to an index with characteristics that are more representative of the Fund’s investment strategy.  The Board also noted the anticipated conversion of the Fund to a newly organized series of Neuberger Berman ETF Trust that will be effected through the reorganization of the Fund into an exchange-traded fund in December 2023 or January 2024. The Board considered that, as compared to its Expense Group, the Fund’s contractual management fee and the actual management fee net of fees waived by Management ranked in the first quintile, and total expenses ranked in the second quintile.

Conclusions

In approving the continuation of the Agreement, the Board concluded that, in its business judgment, the terms of the Agreement are fair and reasonable to each Fund and that approval of the continuation of the Agreement is in the best interests of each Fund and its shareholders. In reaching this determination, the Board considered that Management could be expected to continue to provide a high level of service to each Fund; that the performance of each Fund was satisfactory over time, or, in the case of a Fund that underperformed relative to its Expense Group or Performance Universe, that the Board retained confidence in Management’s capabilities to manage each

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Fund; that each Fund’s fee structure appeared to the Board to be reasonable given the nature, extent, and quality of services provided; and that the benefits accruing to Management and its affiliates by virtue of their relationship with each Fund were reasonable in light of the costs of providing the investment advisory and other services and the benefits accruing to each Fund. The Board’s conclusions are based in part on its consideration of materials prepared in connection with the approval or continuance of the Agreement in prior years and on the Board’s ongoing regular review of Fund performance and operations throughout the year, in addition to material prepared specifically for the most recent annual review of the Agreement.

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Notice to Shareholders

In early 2024, you will receive information to be used in filing your 2023 tax returns, which will include a notice of the exact tax status of all distributions paid to you by the Fund during calendar year 2023. Please consult your own tax advisor for details as to how this information should be reflected on your tax returns.

For the fiscal year ended October 31, 2023, each Fund makes the following designation, or up to the maximum amount of such dividends allowable pursuant to the Internal Revenue Code, as capital gains distributions and qualified dividend income eligible for reduced tax rates. Complete information regarding each Fund's distributions during the calendar year 2023 will be reported in conjunction with Form 1099-DIV. 

Fund	Capital Gains Distributions	Qualified Dividend Income
Long Short	$240,749,525	$53,628,261

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Neuberger Berman Investment Advisers LLC

1290 Avenue of the Americas
New York, NY 10104-0002
Retail Services: 800.877.9700
Broker-Dealer and Institutional Services: 800.366.6264/888.556.9030
www.nb.com

Statistics and projections in this report are derived from sources deemed to be reliable
but cannot be regarded as a representation of future results of the Funds. This report is prepared for the general information of shareholders and is not an offer of shares
of the Funds. Shares are sold only through the currently effective prospectus which you
can obtain by calling 877.628.2583. An investor should consider carefully a Fund’s
investment objectives, risks and fees and expenses, which are described in its prospectus, before investing.

 

L0265  12/23

 

(b) Not applicable to the Registrant.

Item 2.  Code of Ethics.

The Board of Trustees (“Board”) of Neuberger Berman Alternative Funds (“Registrant”) has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions (“Code of Ethics”). During the period covered by this Form N-CSR, there were no substantive amendments to the Code of Ethics and there were no waivers from the Code of Ethics granted to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

A copy of the Code of Ethics is incorporated by reference to Neuberger Berman Real Estate Securities Income Fund Inc.’s Form N-CSR, Investment Company Act file number 811-21421 (filed June 26, 2023). The Code of Ethics is also available, without charge, by calling 1-800-877-9700 (toll-free).

Item 3.  Audit Committee Financial Expert.

The Board has determined that the Registrant has three audit committee financial experts serving on its audit committee. The Registrant’s audit committee financial experts are Michael J. Cosgrove, Martha C. Goss, and Deborah C. McLean. Mr. Cosgrove, Ms. Goss, and Ms. McLean are independent trustees as defined by Form N-CSR.

Item 4.  Principal Accountant Fees and Services.

Ernst & Young, LLP (“E&Y”) serves as independent registered public accounting firm to each series of the Registrant.

(a) Audit Fees

The aggregate fees billed for professional services rendered by E&Y for the audit of the annual financial statements or services that are normally provided by E&Y in connection with statutory and regulatory filings or engagements were $254,300 and $206,800  for the fiscal years ended 2022 and 2023, respectively.

(b) Audit-Related Fees

The aggregate fees billed to the Registrant for assurance and related services by E&Y that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported above in Audit Fees were $0 and $0 for the fiscal years ended 2022 and 2023, respectively. The Audit Committee approved 0% and 0% of these services provided by E&Y for the fiscal years ended 2022 and 2023, respectively, pursuant to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.

The fees billed to other entities in the investment company complex for assurance and related services by E&Y that are reasonably related to the performance of the audit that the Audit Committee was required to approve because the engagement related directly to the operations and financial reporting of the Registrant were $0 and $0 for the fiscal years ended 2022 and 2023, respectively. The Audit Committee approved 0% and 0% of these services provided by E&Y for the fiscal years ended 2022 and 2023, respectively, pursuant to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.

(c) Tax Fees

The aggregate fees billed to the Registrant for professional services rendered by E&Y for tax compliance, tax advice, and tax planning were $75,600 and $55,380 for the fiscal years ended 2022 and 2023, respectively. The nature of the services provided includes preparation of the Federal and State tax extensions and tax returns, review of annual excise tax calculations, and preparation of form 8613, in addition to assistance with the identification of Passive Foreign Investment Companies, assistance with determination of various foreign withholding taxes, and assistance with Internal Revenue Code and tax regulation requirements for fund

investments. The Audit Committee approved 0% and 0% of these services provided by E&Y for the fiscal years ended 2022 and 2023, respectively, pursuant to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.

The fees billed to other entities in the investment company complex for professional services rendered by E&Y for tax compliance, tax advice, and tax planning that the Audit Committee was required to approve because the engagement related directly to the operations and financial reporting of the Registrant were $0 and $0 for the fiscal years ended 2022 and 2023, respectively. The Audit Committee approved 0% and 0% of these services provided by E&Y for the fiscal years ended 2022 and 2023, respectively, pursuant to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.

(d) All Other Fees

The aggregate fees billed to the Registrant for products and services provided by E&Y, other than services reported in Audit Fees, Audit-Related Fees, and Tax Fees were $0 and $0 for the fiscal years ended 2022 and 2023, respectively. The Audit Committee approved 0% and 0% of these services provided by E&Y for the fiscal years ended 2022 and 2023, respectively, pursuant to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.

The fees billed to other entities in the investment company complex for products and services provided by E&Y, other than services reported in Audit Fees, Audit-Related Fees, and Tax Fees that the Audit Committee was required to approve because the engagement related directly to the operations and financial reporting of the Registrant were $0 and $0 for the fiscal years ended 2022 and 2023, respectively. The Audit Committee approved 0% and 0% of these services provided by E&Y for the fiscal years ended 2022 and 2023, respectively, pursuant to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.

(e) Audit Committee’s Pre-Approval Policies and Procedures

(1) The Audit Committee’s pre-approval policies and procedures for the Registrant to engage an accountant to render audit and non-audit services delegate to each member of the Committee the power to pre-approve services between meetings of the Committee.

(2) None of the services described in paragraphs (b) through (d) above were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Hours Attributed to Other Persons

Not applicable.

(g) Non-Audit Fees

Non-audit fees billed by E&Y for services rendered to the Registrant were $75,600 and $55,380 for the fiscal years ended 2022 and 2023, respectively.

Non-audit fees billed by E&Y for services rendered to the Registrant’s investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the Registrant were $0 and $0 for the fiscal years ended 2022 and 2023, respectively.

(h) The Audit Committee of the Board considered whether the provision of non-audit services rendered to the Registrant’s investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the Registrant that were not pre-approved by the Audit Committee because the engagement did not relate directly to the operations and financial reporting of the Registrant is compatible with maintaining E&Y’s independence.

(i) Not applicable.

(j) Not applicable.

Item 5.  Audit Committee of Listed Registrants.

(a) Not applicable to the Registrant.

(b) Not applicable to the Registrant.

Item 6.  Investments.

(a) The complete schedule of investments for each series is disclosed in the Registrant’s annual report, which is included in Item 1 of this Form N-CSR.

(b) Not applicable to the Registrant.

Item 7. Reserved.

Item 8. Reserved.

Item 9. Reserved.

Item 10. Reserved.

Item 11. Reserved.

Item 12.  Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to the Registrant.

Item 13.  Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to the Registrant.

Item 14.  Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to the Registrant.

Item 15.  Submission of Matters to a Vote of Security Holders.

There were no changes to the procedures by which shareholders may recommend nominees to the Board.

Item 16.  Controls and Procedures.

(a) Based on an evaluation of the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act) as of a date within 90 days of the filing date of this report, the Chief Executive Officer and President and the Treasurer and Principal Financial and Accounting Officer of the Registrant have concluded that such disclosure controls and procedures are effectively designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is accumulated and communicated to the Registrant’s management to allow timely decisions regarding required disclosure.

(b) There were no significant changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 17.  Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable to the Registrant.

Item 18. Recovery of Erroneously Awarded Compensation.

Not applicable to the Registrant.

Item 19.  Exhibits.

(a)(1) A copy of the Code of Ethics is incorporated by reference to Neuberger Berman Real Estate Securities Income Fund Inc.’s Form N-CSR, Investment Company Act file number 811-21421 (filed June 26, 2023).

(a)(2) Not applicable to the Registrant.

(a)(3) The certifications required by Rule 30a-2(a) under the Act and Section 302 of the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley Act”) are filed herewith.

(a)(4) Not applicable to the Registrant.

(a)(5) Not applicable to the Registrant.

(b) The certification required by Rule 30a-2(b) under the Act and Section 906 of the Sarbanes-Oxley Act is furnished herewith.

The certification furnished pursuant to Rule 30a-2(b) under the Act and Section 906 of the Sarbanes-Oxley Act will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Registrant specifically incorporates it by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Neuberger Berman Alternative Funds

By: /s/ Joseph V. Amato                               

Joseph V. Amato

Chief Executive Officer and President

Date: January 5, 2024

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By: /s/ Joseph V. Amato                              

Joseph V. Amato

Chief Executive Officer and President

Date: January 5, 2024

By: /s/ John M. McGovern                         

John M. McGovern

Treasurer and Principal Financial

and Accounting Officer

Date: January 5, 2024